Personal Finance Solution |

By admin | Published September 2, 2010

Forex trading seems to pop up on the internet or in conversation with alarming regularity these days, promising the chance to earn some easy money and the chance to trade like the “big boys”, but many people who have been lured into a false sense of security have ended up getting their fingers quite badly burned.

As with many other things, forex brokers are experts who have studied the markets for many years, read many articles, learned from their peers – if you want to be good at something you need at least to have a little knowledge of what you’re dealing with, or find somebody else that does.

This is where the internet can really help. Online forex trading is big business and, if you don’t know what you’re doing you really need to find a forex broker who does. Don’t, however, be lured by false promises of becoming an overnight success, but if you are seriously interested in dabbling in the markets then online forex could be the answer for you. You need to make sure that the forex broker of your choice is properly qualified and legitimate, he should provide you with an amount of forex software and you’ll also expect to hand over a minimum deposit. It’s best to stick to this minimum, at least in the beginning until your broker has the chance to show you what he’s made of.

If you’re not too sure about the idea of long term investments, you might prefer to try your luck with a little day trading. This requires you to buy and sell the securities within a 24 hour period. This is considered to be a pretty risky business by some brokers (you usually need to use quite high stakes to make any real money) but by the same token can be very exciting, and there’s nothing to stop you from making several trades in just one day, using the same stake money to make a profit several times over. If fast action and high potential profits sounds like your kind of fun, then maybe you should concentrate on watching the day trading action.

There are lots of gains to be made and fun to be had with forex trading, but you just need to be careful not to get carried away and always follow the advice of an expert, at least until you feel confident to go it alone. You can win fast and you can win big, but you can just as easily lose it all on the next trade – remember that.

Why Your Debt To Credit Ratio Is Important

By admin | Published August 31, 2010

Many personal finance pros will tell you to try to maintain the debt to credit ratio under fifty percent. As the ratio goes up, your credit score goes down. So, in the example above, with a $10,000 credit card limit, you would not want to carry a balance of more than $5,000.

Creditors use a variety of criteria and standards to make a judgement of your credit score. Among all of the factors that they use, however, your debt to credit ratio consistently ranks pretty high on the list. For lenders, it is a great snapshot of your credit. By simply looking at this ratio on your credit report, a creditor can get a very clear idea of how deep in debt you are. Regardless of your credit score, if based on your debt to credit ratio, it seems like you are in deep financial trouble, you have a lot less chance of getting the loan that you desire. And, if you do manage to get the loan, odds are that you are going to end up paying a much greater interest rate than you probably had depended on.

If you want, you can easily use the information that you know about the debt to credit ratio to improve your credit score. All you have to do is to pay down the balances on certain of your credit cards. Then set those credit cards aside. Don’t close your account but keep it open. This way it shows up on your credit report as you having access to a large pool of credit that you are not using.

The practical effect of this is that your debt to credit ratio is lowered. And, as a result, your credit score goes up. A second reason for keeping your credit accounts open is that credit reporting agencies tend to give a lot more credence to long held accounts than they do to shorter held ones. In other words, everything being equal, a credit card that you have held for ten years is more positive for your credit score than a card that is only two years old.

But, you would be making a mistake if you are depending on the credit report companies making sure that everything is correct in your credit report . Agencies are notorious for carrying credit errors for years on consumers records. It is up to you to keep track of everything in your credit report and correct the errors that you find in them.

All the ups and downs of Forex Trading

Why Your Debt To Credit Ratio Is Important

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