Similterra

As the US Federal Reserve responds to economic pressure by aggressively cutting interest rates, some countries might imagine they won’t be affected by the lack of confidence in past decisions made by US and European banks.

But some people outside the US have been surprised to learn that their own banks are heavily involved in bank to bank loans involving US companies affected by the subprime mortgage business, and their citizens are waking up to what a global economy can mean in bad times as well as good.

In Europe, the tax havens of Monaco and Andorra are regarded as safe havens – or as safe as can be in today’s global economy – and both countries have seen an inward flow of funds over the last year, not only from other European countries but from the Middle East and the US too.

But now even the banks in Andorra are tightening up on who they lend money to, and cutting the amount they lend to property buyers looking for a mortgage.

Previously the banks were lending up to 80 per cent of a property’s value, but recently this has been cut to 70 per cent. In addition the previous ease of getting a mortgage with few checks for assets has been replaced with more documentation required.

‘The new tougher controls on credit being seen by the Andorra banks might impact the property market a little as we are in the middle of the ski season, and some people on ski holiday end up buying an apartment, many taking advantage of easy to get loans.’ commented one Andorra property company recently.

Reporting on last year’s property market, the company says 2007 looked gloomy for estate agents in Andorra for the year overall given poor sales for last January, February and March. But the second quarter proved to be dramatically better.

Rather than the ski apartment selling season being delayed, what saved the second quarter was high net worth individuals looking for residency and taking advantage of Andorra’s tax haven status that has reignited the property market.

Buyers from the UK in particular were out in force during April, May and June – and again in the autumn from October, with many spending twice as much as the average ski apartment buyer.

The property buyers tend to head for different areas of Andorra, with the ski apartment buyers tending to purchase in the key ski resorts of Soldeu and Arinsal.

Those looking for residency for tax reasons go more for the year round villages and towns which have a resident community.

Outside of the capital (la Vella) these tend to be La Massana and the upcoming village of Anyos, Ordino and Arinsal, although Arinsal’s nightlife during the ski season early December to late April tends to steer many newcomers to La Massana and Ordino.

It’s early days in the global slowdown of easy credit and fast loans, and while London and New York are the main players in the banking game, countries as small as Andorra will be trying to avoid any major impact on their domestic banking systems and real estate markets, although in the medium and long term that might prove just impossible to achieve.

Even although it’s a love, hate, need relationship, banks are as necessary to everyday living as that early morning cuppa to kick us into life each morning. We swallow a cup of tea or cup of coffee almost without hesitation or even thought. Know what I mean? You bet and it’s the same with our local bank. We use it almost without thinking. But there’s more to it than just the ‘Good morning!’ greeting and pleasant smile from the employee behind the counter.

When you walk into your bank, you’ve entered the doorway of an intangible pyramid, stretching back into time and space, leading us to the origin. Yes, we’re going to dig deeper into the bank, but not the one we might enter daily or occasionally. We’re talking ‘the Bank’ here. Understand? No? To explain, ‘the Bank’, within the UK financial industry sector, usually means one thing, the Bank of England.

It was founded by a group of rich and powerful merchants just a little over three centuries ago and then granted a Royal Charter by William III. In the year following the end of the Second World War, the Bank of England was nationalised, formalising the long relationship with the UK Crown. It then became the United Kingdom’s central bank.

Most countries have a central bank. In the USA, it is called the Federal Reserve. The European Union has its European Central Bank. So what exactly is a central bank? Why do we need such a set-up?

A central bank has a number of complex tasks to perform. The first of these is to act as banker to the government itself. The central bank – the Bank of England – also oversees the economy. And it regulates and controls the supply of money.

The UK government actually has an account with ‘the Bank’. Surprised? So do all of the major banks. They, too, have accounts with the Bank of England, which they use to borrow cash or to deposit money.

Thus interest rates offered by the Bank of England to depositors and borrowers – in other words, the major banks themselves – impact money market interest rates.

Such rates will eventually feed through to us all in one way or another. For example, it’ll determine how much we’ll pay in interest payments for the mortgage. It’ll add to the final cost of the car loan we’ve just taken out, the computer we’ve just bought on credit, or the rate of return offered on our savings account.

Yes, ‘the Bank’ may be more than 300 years old, but no one would argue that it’s reach, influence and relevance has not grown, in greater proportion, with each passing year.

If you are wondering whether or not you should get a credit card then the answer is probably going to be ‘yes’. Credit cards are simply a normal part of everyday life these days and wherever you turn you will see that you are being asked to pay for goods and services by credit card and indeed are often being offered incentives such as air miles for doing so. So just what are the benefits of having a credit card?

Perhaps the most important benefit is simple convenience. A few years ago there were still many merchants who would not accept credit cards but nowadays almost all merchants accept payment by credit card. This means that you no longer have to carry large sums of cash, which is both inconvenient and unsafe, but merely need to carry your plastic card when you go out shopping. But it goes even further than this.

Today many merchants have arrangements with the credit card companies and will offer interest-free installment plans on larger purchases paid for using your credit card. In other words you can simply spread the payment over several months without the store charging you any interest for doing so. This of course is on top of the normal interest-free credit period offered by your credit card on all purchases. In other words, if you buy something today on your credit card you will not need to pay for it until next month and, providing you settle your credit card balance in full then you will not incur any interest charges.

Another very important consideration these days is the convenience of shopping from home or on the Internet. How many times have you seen something advertised on the TV which is just what you are looking for? With a credit card all you need to do is to pick up the phone, place your order using your credit card and then wait for your goods to be delivered to your door. And how about booking airline tickets for that last minute trip? Simply hop onto your computer, look for the latest discount deals and make your booking there and then using your credit card. In many cases you can even print off your ticket and then just head straight for the airport.

The list of course goes on and on and for most people who already have a credit card they simply do not know what they did without one. So, how do you go about applying for a credit card?

Applying for a card is very simple and you can either pop into your bank or other credit office in person or apply on the Internet. You will be asked to fill out a simple application form which essentially means that you are entering into an agreement with the credit card company. It is important therefore that you read the application form carefully and understand exactly what the terms and conditions are for the issue of the card for which you are applying. If you do not understand any of the conditions then ask the credit card issuer for clarification and, if you do not agree with any of the conditions, then do not sign the application and look for another credit card with a different company.

Once you are happy and have signed the application the credit card issuer will run a few checks, including a check of your credit history, and as long as they are satisfied with the results of these checks they will then issue your card.

At the end of the day applying for a credit card must be very much a personal decision but, as long as you understand just how the card works and use it responsibly, then most people would agree that a credit card is a boon and a blessing.

Most business experts will profess the importance of having a good working relationship with your bank. Naturally the choice of bank is a decision that will require careful consideration and extensive deliberation. Ultimately your bank should support your endeavours and understand what your long term goals are. As well as this, for those starting out in the world of business, having a bank that are happy to offer vital information and advice on all items pertaining to business operations is advisable.

When selecting a bank there are two predominant factors that should always be at the fore of your thinking. These are the integrity of the institution and the services they will be able to offer you. In the modern world internet banking services can be regarded as the norm but as with other services the efficiency of these services varies greatly in quality and price. Fundamentally a bank should be able to help you in controlling your finances and reduce the effort you have to put into administrative duties.

As previously stated the integrity of the institution is vitally important, a bank that is secure in its own financial position is the ideal. When looking at different banks understanding their history and how they treat their customers is desirable. By having this understanding it is possible to create a good working relationship with the knowledge that the bank is safe in its operation.

The charges you must pay will obviously form a large element of the final decision to sign up. Normally, accompanying literature will be able to give you information on overdraft charges, and transaction fees. Pore over this information carefully, it may be time consuming but will ultimately be worthwhile. It is important to realise that cost should always balance with services; predominantly it will be worth paying that a little extra for a more expansive service.

As well as costs, communication should always be a major consideration when selecting a bank for your business finances. Banks should always be easily reached and ready to communicate with you on all manner of different issues. Remember however that this works both ways and to build a good working relationship with your bank you must also be contactable to their operatives.

At the outset of your relationship with a bank it is normal to present a business plan to account controllers. This is because the bank needs information on your long term objectives to understand where you intend to take the business. If they have this understanding they will be able to support your operations more effectively and may even share your optimism for the future.

Part of this support will undoubtedly come from the business advice team. The knowledge this team possesses can be extremely useful in pursuing progression. Additionally they will also be able to help you with any unexpected problems that could arise. Many banks even have teams that are experts in particular industry fields, for many businesses finding an advice team with such expertise can be extremely beneficial.

You may even need the bank to help you in finding the start up funding for your business. Naturally they will want you to have your own capital but business loans are available so businesses have a financial buffer should problems arise. When borrowing money, it is even more important to build a relationship with the account manager so they can put a face to your name.

Hopefully this advice has given those starting out in business an idea of the importance of finding the right bank for your company’s finances. With their support it should be possible to find long term success and ultimately profit. As most experts will agree, having a solid financial platform is an essential constituent of any successful business.

The best ways to get a fixed rate credit card

Out shopping and see that new dress your best friend was talking about? Or maybe that 40″ LCD TV you’ve been reading about? You know you don’t have enough in your bank account right now to afford that purchase, but if you have a credit card that great deal can be yours!

Credit cards can help you get the things you want – you can buy something now, and pay for it later. But the longer you take to pay it back, the more interest you pay as well. If you take long enough, you can easily spend more on interest than the original purhcase cost! This is because most credit cards have high interest rates – from 19 to 28% annual interest rates. Credit card companies need to make money to stay in business, and this is where they make that money. Is there a way around this down side to credit cards? Well, there is.. for some people. There are two main ways to get low fixed rate interest credits – one is temporary, and one is more permanent.

Remember those adds on TV for the credit cards that have “sky rocketing” interest rates after the introductory period is over? The starting interest rate on many new cards is under 10%, and sometimes even under 5%. This low rate is used to get people to sign up for the credit card. The low rates generally are for a set amount of time, such as 6 months. Also if you don’t folllow the rules, you void the special rate and end up paying the full regular interest rate of roughly 20%. Credit card companies can offer this low interest rate to start becuase nearly everyone gets used to the low rate, and starts using the credti card more and more. Then when the rate goes up they are either carrying a large balance or at least using it a lot and can’t stop. As long as you remember the rate is going up, and use the credit card wisely you have nothing to worry about.

However, the true holy grail for credit cards is a card that has a low interest rate that doesn’t end in 6 months. What would you say to a credit card that only charged 4.75% interest for the first 3 years, guaranteed, and after that it would only be prime plus 1-2%? Most people would jump at an offer like that! One condition is that the card will have no bonuses or freebies – no money back, and no ‘points’. That offer is not available to everyone. Generally, credit card interest reflects how much of a risk the credit card companies sees in you. If you never pay your bills, why should they lend you money on your credit card – you might not pay them back! If you have a perfect credit history, you can easily get these very low rate credit cards. Your first step should be to check your credit history. If you have some late payments, don’t worry you can likely still get a good rate for a card, but you won’t get the absolute cheapest rate. In this case, get that lower rate card and use it wisely. Missed payments or collections will never stay on your credit history longer than 7 years. Check your credit history from time to time, and when its all cleared up go apply for that bargain basement rate card!

Don’t worry, even if you can’t get that lowest rate card, nearly everyone can get a rate lower than they are paying right now. The key is to keep improving your credit record, don’t get a card with ‘freebies’ and ask around. If you have to, go to your current credit card company, and tell them you are going to swtich to a lower interest card. If they want to keep your business they will lower your interest rate. Hey, its worth a try right?

Low fixed rate credit cards are not just a dream, you can get them. And they will put more money in your pocket at the end of the month. Isn’t that what we all want?

A bank levy can be issued for several reasons. It is most commonly used by the IRS and creditors. For instance if you have not paid your taxes or a debt that you owe.

When a bank levy is issued it means that your account is frozen you are not able to withdraw anything out of your account. And the funds that was in your account can and usually will be seized.

Before a person has a bank levy issued to his/her account they will receive a letter, a phone, or some type of notice letting them know that action will be taken if they don’t pay up on what they owe.

It is important that as soon as the bank levy is issued to your account that you contact the court as soon as possible if it is issued by a debtor. There is a way for you to be able to receive your funds back and make a payment plan with the debtor. This has to be done within 30 days of the levy being issued.

Now when the IRS issues a levy the money is not refundable and the bank levy will stay on your account until you pay all of the taxes that you owe. Although you cannot withdraw money at this time you are able to make deposit so if you have an employer that deposits your check into your account it will be seized.

When a bank levy is issued to an account the banks usually will charge the account holder $100 or more for every time there is a bank levy issued to that persons account.

The IRS served banks with memos to guide them on how they will work with them when issuing bank levyies. They send these memos to make banks aware of the laws governing the disclosure of bank account information.

The law that was shared on business tax recovery website was “Title 26 United States Code Section 6333 of the Internal Revenue Code (IRC) authorizes the Service to examine any books or records pertaining to property or a right to property subject to a levy. 1 The Treasury Department interprets this section to mean that, at a minimum, the Service would be entitled to a bank record indicating a levied accounts balance on the date the levy was served.”

This is only a portion of one of the guiding memos that the IRS has served banks with. When an IRS issues a bank levy the bank is required to give the IRS all of the taxpayers account information either willingly or by summons.

When the bank levy is issued the account is frozen immediately whether the bank gives the information right then or if the taxpayer’s information has to summonsed.

One way to avoid this happening to you is of course pay your taxes and your debtors. It is not a pleasant thing to go to your bank account one day and find you cannot withdraw money or pay your bills.

With the advent of today’s mobile technology, options in banking are continuing to develop with exciting possibilities. In just a few short decades, banking has evolved from strictly brick-and-mortar operations to include phone transactions, ATMs, the Internet, and now mobile phones and devices. With each progression, clients have the ability to conduct their financial business from greater remote locations.

According to a recent study by a financial consultancy, it is predicted that 35 percent of U.S. online banking households will be using mobile banking by 2010. Casting a farther glance forward, eventually users will have the capability to make point-of-sale payments right from their mobile devices.

The wireless and mobile markets represent some of the fastest growing industries in the world today. While European and Asian countries have traditionally experienced greater saturation in these markets, the United States is beginning to realize these full advantages as well. Financial institutions, in particular, intent on positioning themselves broadly in the market, are keen to develop and promote value-added services such as mobile banking. In fact, banks worldwide have invested billions of dollars to build superior Internet banking capabilities for their customers.

The state-of-the-art technology allows clients to bank from wherever and whenever they choose through any web-enabled phone device whose network allows Secure Sockets Layer (SSL) traffic. In laymen’s terms, SSL is a protocol that provides a secure channel between two machines operating over the Internet or an internal network. For Internet users, the presence of SSL is displayed through a padlock icon on a website.

Thanks to this technology, end users are gaining a very useful and simple experience. From a mobile device, a user may view their bank account balances, transaction history, and receive bank alerts. Especially convenient, users may also transfer funds between accounts and pay bills to existing payees.

Enrolling for this type of service typically begins through an activation process via a bank’s website. Users select the accounts they want to access from their mobile device, which can be edited at any time. After entering a mobile phone number and indicating the wireless provider, the bank client is nearly ready to begin banking from a mobile device. Following any transactions or payments, a SMS text message is sent to the device to confirm the activity. This is especially helpful in the event of a lost signal or dropped call. If the client does not receive confirmation through a SMS text message, he can check an account and re-submit any transactions that did not process.

Secure online banking is a serious concern for both banks and their business banking clients. When it comes to mobile banking, the actual account data is not stored on a mobile device, making it impossible to for the information to be stolen from a lost or misplaced phone. When it comes time to replace a mobile device, customers simply edit their Mobile Settings and make changes to the wireless provider and phone number as needed. For those who change phones but keep the same provider and number, no changes are necessary. Those who switch wireless providers or phone numbers only need to modify the settings via their online bank account.

Low interest credit cards are an ideal choice for those who are looking for the much needed financial flexibility to become debt free. Many of you many wonder how low interest rate credit cards can help get you out of debt, when it appears on the surface, that most credit cards seem to help get people into debt. But if used wisely and with discipline, these type of cheap credit cards can provide the right kind of financial assistance during any tough financial crisis.

How Can I Get Out of Debt with Low Interest Credit Cards?

You need cash immediately to get out of the debt created by high interest credit cards but you have no option to raise the money right? What if a company offers low interest credit cards as low as 0% APR as an introductory offer? And, what if they give the option of transferring your card balance from your high interest rate credit card to your low interest credit card? Yes! You would probably consider it a windfall because it can really help bail you out of your current financial situation.

If you are wise, you can make great use of such low interest credit cards to assist you in paying your outstanding debts. There are several credit card companies offering their service at unbelievably low rates. The truth of the matter is that these type of cards utilize different promotional offers in order to rope in new customers, but also to retain existing customers as well. You definitely should not need shy away from this type offer because of outstanding debts. In fact, these types of low interest credit card offers are tailored uniquely for your circumstance. The competition among credit card companies is so high that there will be several companies willing to do business with you irrespective of your financial situation, good credit or not so good.

The greatest advantage of low interest rate credit cards is obviously their low APR. It allows you to save a lot of money on interests. The savings from these types of cheap credit cards should be used to aggressively bring down your outstanding card balances. Remember, it is the balance on credit cards that gets you in trouble. So, you should try to get rid of it as quickly as possible. You might think that by making a small payment that you are at least paying something, however, it does not solve the problem as the principal amount actually grows if you only make small or minimum payments.

Financial Discipline

Some people use low interest credit cards as a license to overspend as the APR is so low and cheap. But nothing could be further from the truth. Low interest rate credit cards alone cannot get you out of debt traps. Strict financial discipline and proper financial planning is necessary for it. Low interest credit cards can then act as a booster or catalyst to solve your debt problems.

To avoid further debt traps, you should aggressively pay down the low interest credit card and utilize the card for additional purchases only if you can pay off both the new purchases as well as the existing debt payment. Remember, however, that if your card balance is large, it is best not to charge additional items on the card. You should focus on paying down the balance before incurring additional debt.

Things to Remember

Before applying for low interest rate credit cards, you should thoroughly assess your current financial situation. Keeping your personal financial situation in mind, you can mindfully search for the different types of low interest credit cards. Most people obviously want to transfer balances of high interest credit cards to low interest credit cards, and this is a very good option as it can save substantially on finance charges.

Make sure that transfer fees or other miscellaneous fees that might be involved do not negate the savings captured by a low interest card. Some cheap credit cards might have high interest rates that are applied to balance transfers, but lower APR’s on an ongoing basis, while some low interest rate credit cards only give introductory rates for a specific period of time. Before selecting any one of the low interest credit cards, get a clear idea about the introductory rate, balance transfer rate, cash advance rate as well as the ongoing long term APR.

I’m sure you’ve seen direct mail offers, promotional brochures and Internet ads announcing:

“0% APR credit cards. Limited time offer. Apply today!”

You can’t beat that for a credit card. That’s just like buying something with cash. A great deal, especially if you don’t have cash on hand. But you may be wondering, “How can the credit card companies and banks make money if they aren’t charging interest?” Well, read on to find out whether or not these 0% APR credit card offers are just pulling your leg.

Deal Or No Deal

Every time you buy something using 0% APR credit cards, you pay absolutely no finance charges or interest rate charges on your entire credit card balance. Just think… you can refurnish your home, pay for your child’s college tuition or go out on a spending spree without paying a penny more.

However, most 0% APR credit cards offer only “introductory rates” at 0%. This low rate may be limited to a specific time period, such as 3 months or as long as a year. In addition, 0% APR credit cards often allow you to transfer balances (up to a specific amount) from another credit card to take advantage of the zero interest deal. Once the introductory rate period ends, then the APR can go through the roof.

Okay, so maybe you can’t get 0% interest into eternity. But, if you play your card right, you can still reap the benefits of these unique offers.

Making Zero Interest Work For You

You may already have several credit cards and can’t imagine what you’d do with another. After all… personal finance experts advise against having too many credit cards. Before getting a 0% APR credit card ask yourself, “What is the APR on my credit cards?” and “Do I carry a balance on my cards from month to month?”

The average interest rate for credit cards is around 14%. On the low end, you may have a card that charges as little as 5% interest, whereas cards for those with bad credit or no credit can be a whopping 29%. Retail credit cards tend to have a high interest rate around 19%, even if you have A1 credit. If the interest rates on your cards are up into the teens, then you definitely need to consider other options (a 0% APR credit card), unless you pay off your balances on a monthly basis.

Don’t throw money out the window and into the pockets of the credit card companies. If you have high interest cards and pay only the minimum balance, then it can take years to pay off. $1000 spent could nearly double to almost $2000 by the time it’s paid off. The best thing to do is transfer the balance to a 0% APR credit cards.

Where To Find 0% APR Credit Cards

If you have good credit, chances are you’ve already been bombarded with mail offers. You might even find these special values available through organizations you belong to or companies that you do business with regularly. Other sources include your local banks and credit unions. And don’t forget to search the Internet. It’s a great place to comparison shop for numerous credit cards. Keep in mind that you usually need to have good credit to qualify for a 0% APR Credit Card.

0% APR credit cards allow you to avoid finance charges altogether. If you are in debt, this is especially helpful in that you can pay down your balance much more quickly. But be sure you don’t end up in a situation where you transfer balances from one card only to fill the old card back up again with new purchases. If you’ve been thinking about making a large purchase but don’t yet have the funds and don’t want to take out a loan, then a 0% APR credit card will be like paying cash. Just be sure to pay off your balance before the introductory rate ends and finance charges begin.

Most of us will have at least one bank account in a bank. Yes no one will store all his or her money at home these days. However, one thing you should understand is that the function of a bank is more than a place to store your money. As a result, you should try to select your bank wisely.

Choosing a bank is just like shopping. You have to compare prices in various shops. You may need to visit shop after shop before you actually purchase. This is also true when you are choosing your bank. You may also visit bank after bank before you make the final decision. Here are some of the issues you may consider when you are choosing the bank.

When you save the money into your saving account, you may sometimes need to withdraw the money. Nowadays most people will go to the ATM machines in order to withdraw money from the saving account.

As a result, the first thing you need to consider when you select your bank is the network of ATM machines. You have to make sure that it is convenient for you to withdraw money from the machines. The best situation is that there is at least one machine which is located near your home. You will certainly find it very inconvenient if the bank you choose does not have a good ATM machine network.

If you would like to use checks, you may need something more than merely a saving account. You should ask clearly what costs will be involved when you need a check account. In fact, some bank may have offers that you do not need to pay extra and you will be able to have a check account. Be sure you ask clearly all the questions about charges before you make your final decision.

Some bank may also offer you some all in one account which means that you may even use the account to invest in the stock market and Forex market. Again, you will need to ask for the charges involved. At the end of the day it may be a good idea to have such account since you will find it a lot more convenient when you try to invest.

Remember, the function of the bank is more than merely storing your money. You have to choose the bank with great care otherwise you may be wasting money on the charges involved.