Finance, Credit, Investments – Economical Categories

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.

We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

o The loaning of money may bear no interest;

o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o It may not bear no interest (if the assignment doesn’t foresee something);

o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

– economical development according to the key directions to the concentration;

– providing high rates of economical growth;

– raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

– less then 6 months – quick compensative;

– from 6 months up to the year and a half – middle termed compensative;

– more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.

As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.

5 Things to Keep in Mind When Starting a Real Home Based, Big Money Business

Whether you are planning on starting a business or looking to join an existing business, there are some things you will want to keep in mind starting with a real home based big money business. As with any industry, there are scams and legitimate opportunities you can find online.Take the tips listed in this article to truly flourish within the internet industry.

1. One of the most difficult facets of running a home based business is staying patient. If you are investing a great deal of time and effort while seeing little to no results it can be easy to get discouraged and frustrated after the first month or two. Just remember that it is going to take time to actually build up a successful business, but the results in the long-run will be well worth it.

2. Stay confident in yourself and remain patient. Nothing good will come from getting down on yourself and doubting your abilities. You are bound to go through ups and downs on the internet and it is how you deal with this that will determine whether or not you succeed. Just remember that a real home based business is going to be full of surprises, let-downs and accomplishments. But as long as you believe in yourself you will be able to accomplish anything.

3. Once you join a business or start one yourself, the last thing you want to do is stop looking for additional opportunities to take advantage of. There are no limits as to how many programs, web sites, or jobs you are involved with; and that is the beauty of the internet. Make sure you do not overwhelm yourself and are capable of taking on everything you get involved with, but never look away.

4. Feeding off of the last point, you have to be willing to take risks with a real business on the internet. Internet marketing is all about risk taking and hoping for the best. Believing in yourself and trusting your instincts is very important. If you are not willing to take risks you will end up settling for mediocrity while allowing your competitors to jump on opportunities of a lifetime.

5. Finally,keep in mind is that it is impossible to be too knowledgeable or experienced in something. There is always room for growth no matter what niche or industry you are in. For this reason, take time to hone your skills by taking short training sessions, doing training phone calls, and purchasing information products. The more you know within your niche the better prepared you will be for handling prospects and customers.

Starting a real home based big money business or joining an existing one is completely different than taking a few surveys or writing a few articles for a freelance web site. There is a tremendous amount of time and effort that you will need to invest into the job. For this reason, keep in mind each of the points that are listed in this article.

Consumer Credit Made Easy

Building a good credit record is one step in reaching financial independence and responsibility. An achievement that has great rewards and comes with great responsibility. Learning to manage credit responsibly is something that can be passed on through the generational lines.

Purpose for Obtaining Credit

The main purpose for credit is to allow the consumer to make purchases for items in advance while making incremental payments on their balance and paying interest to the lender for allowing them to borrow. Many companies, as well as lenders, use credit history as a base line for what are considered “The 3 C’s:”

Character: In terms of how a person has handled past debt obligations: From the credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined.

Capacity: This refers to how much debt a borrower can comfortably handle at any given time. Income streams are analyzed and any legal obligations are considered, which could interfere in repayment.

Capital: This refers to current available assets of the borrower, such as real estate, savings or investments that could be used to repay debt if income should be unavailable. CAMEL is a tool sometimes used for assessing credit-worthiness of a borrower. CAMEL refers to:

C: Capital
A: Assets
M: Management
E: Equity
L: Liquidity

Although, this approach can seem unfair due to circumstances that may happen which affect the consumer financially, it is the closest approximation that gives equality in borrowing. This is why becoming financially stable and planning finances for now and the future is a must. This approach will give the freedom and flexibility to fund things as well as receive other smaller forms of credit or large purchases such as a home or car.

Repairing Consumer Credit

Generally, this topic is a mystery to many, but it is actually pretty simple. Every consumer has the right and the capability to fix their credit items. Let’s look at some simple steps in doing this:

– Obtain and review credit report.
– Analyze report.
– Make a list of all the items that are considered to be questionable or negative. Clearly identify each item in report to be disputed, explain why the items are being it disputed.
– Write a dispute letter to the credit bureaus.
– Send the letter to the credit bureaus. Make sure it’s sent registered or certified mail.
– Document efforts. Record when letters are sent, and the results.
– Wait for the bureaus to investigate claims (30 days).
– Analyze the results.
– Resubmit if necessary

Obtain and Review Credit Report

Obtaining a credit report can easily be done by either visiting Annual Credit Report online for a free report or request via phone or mail;

Call 877-322-8228 or by complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

When you order, you need to provide your name, address, Social Security number and date of birth. To verify your identity, you may need to provide some information that only you would know, such as the amount of your monthly mortgage payment.

Analyze Credit Report

Look over report and notice what types of items that are listed and verify they are valid accounts. Make a list of all items considered to be questionable or negative.

Use an extra sheet of paper and take note of duplicate items with same account numbers, negative reporting that is inaccurate, accounts that have been satisfied but not reported as so, and any other questionable items located.

Write a Dispute Letter to the Credit Bureaus

What should be challenged? Anything that is invalid or falsely reported. Don’t bother challenging the information within a collection listing, charge-off, court record, repossession, foreclosure, or settled account. As the basic nature of these listings is negative, changing the information within the listing will yield no improvement. Severely negative listings, such as these, must be disputed on the basis of complete deletion or not be disputed at all.

These letters are basic in nature and are sent to all three credit bureaus at Equifax Information Services, Experian Consumer Assistance, and TransUnion.

New Positive Consumer Credit

Make sure when sending reports electronically an email copy is saved so it can tracked. Once a response is received evaluate what items came off, which stayed and whether or not it is necessary to repeat this process.

When attempting to establish new positive consumer credit, make sure all negative items get paid or paid down. Consumer credit is important to understand and to pass on down the generational lines.

5 Facets to Focus on in Order to Create a Home Based Big Money Business

The competition for online businesses is as tough as it has ever been before. However if you want to start an internet business this is no reason to get discouraged and give up without trying. There are far too many opportunities for you to pursue to just give up because of the competition. For this reason, here are five facets to focus on when trying to create a big money business from home.

1. Marketing Perhaps the most important facet to running a home based big money business is your marketing. Do whatever you can to create interest in your business over all of your competitors and remember,it is up to you. It is really very important that you network and interact with your target market as much as possible. Start a blog,network in social sites like Facebook, Twitter and MySpace and take the time to post in forums.

2. Quality content No one wants to arrive to a web site only to find the same monotonous content they have read all over the internet. For this reason it is crucial you read the news and find out what people are looking for in forums. By identifying your prospects’ questions you can create fresh and enticing content that is actually appealing to your visitors.

3. Video/audio While quality content is important, it is not enough nowadays to actually create a successful business online. Along with fresh content, you have to have video and audio to offer visitors as well. You need to have audio and video on your web site;whether it is video of you explaining the product, an overview of the service, or testimonials from previous customers.

4. You can easily get caught up in the countless responsibilities and tasks you need to take care of as a small business owner. However, keep in mind that it is the customer that says whether or not you stay in business. For this reason, it is imperative you drop everything and focus on the needs and wants of the customer. Make sure to promptly respond to all emails and answer any questions as best as you can.

5. Research! Research! Research! The last facet you need to focus on in order to create a home based big money business is research. This is something far too many entrepreneurs forget about after the first few months of running the business. It very important that you know what is hot and what is not because the Internet is constantly changing and evolving. Whether you read the news, read forum posts, or simply scroll from site to site within your niche, it is important you take the time to research your online business niche.

Dig Yourself Out Of Credit Card Debt

Many millions of British people have financed their financial future over Christmas last year. They have put hundreds or even thousands of pounds onto their credit cards in just a few weeks.

On average, around £200 each more than the same period the previous year. Many people in the UK now carry credit card balances equalling a year’s salary. On top of this, huge numbers made little attempt to pay off the balance. Opting instead to pay the minimum balance requirements of each month

This can be a slow and painful financial death by credit card payments. There is no reason why you should not get a grip of the situation and turn it around to make your credit card debt more reasonable.

The economy is slowing down, the housing market is in a bad way and unemployment is slipping ever higher. So now is the time to try to reduce your credit card debts, if not even eliminating them altogether.

There are several steps take to help yourself onto the ladder that will eventually allow you climb out of any credit card debt problems you may have.

The first rung of this debt clearing ladder is to create a budget. This sounds a little daunting, but it really isn’t that difficult. Most people who have money problems also do not have a budget; this simple tactic can change your financial situation.

You need to get all your paperwork and bills together to work out how much you actually are spending every month. And also how much of that actual inescapable expenses. And just what things that you can cut down on or eliminate.

First of all calculate your expenses that come in every month, such things as car payments, credit card payments electricity bills and so on. The next thing to do is work out exactly how much your household income is per month.

Unfortunately, you may well find like millions of people in the UK that the amount that comes is actually lower than the amount that is going out. This should not come as a surprise as this is the reason why your credit card debt is increasing each month. So, you will need to make cuts, figure out what you actually need to keep and what are the things that you can live without. This may not be big items it may only be regular small items.

For example, do you always stop at the coffee shop on the way into work every morning and pick up a cup of coffee. Just think how much that adds up too five days a week. How much is that month? How much is that year? It is not hard to figure out where a lot of your money is going. If you repeat this exercise, with everything that you spend it may give you an idea what you can cut back on.

Your grandmother probably used to have envelopes with cash in them, one for the gas bill. One for the catalogue man, one for the milkman and so on. This was a good way to budget, in her day and it still is today. It’s a simple system that helps you to know exactly how much spare money you have available.

Start using your credit cards sensibly; it is not good idea to start pulling out credit card every time you don’t have sufficient cash to pay something. Credit cards are not free they have to be repaid. Many people seem to be under the impression that if they put payments on plastic in never has to be repaid.

You should start to consider your credit card as a useful tool to help you to budget each month. Not an excuse to spend money that you don’t have, you could freeze your cards for a month or two. This is a simple exercise, take the cards out of your wallet place on them in an envelope, seal it up with a date on the outside and don’t open it up before that date.

Start paying off your cards. To do this obtain exact balance for every card find either the one of the highest rates of interest or one with the lowest balance. Concentrate on playing that card off, only pay the minimum on all your other cards until that card is paid off, and then do the same the next card, and so on.

If you have sufficient income, and you can afford to make more than the minimum payment on more than one card that will make a significant difference to the balance.

If you pay the minimum on the card each month, how long do you think it will take you to pay off the entire balance? A year? Three years? In fact, the average length of time to pay off a credit card debt by paying the minimum is 18 years. That equals a shockingly large amount of interest, so that is something you need to consider next time you think that it’s a good idea to just pay the minimum this month.

Another option is a debt consolidation loan that will pay off all of your cards leaving just one simple monthly payment spread over a number of years. This will save you a huge amount of interest and will also actually cost a lot less per month, allowing you to repair your finances.

Credit card debts and not the end of the world is possible to fight back and resolve your problems, it takes determination and hard work, but it can be done