Insurance World

When applying for unsecured loans, there is a tendency for people to view the whole issue in extremes. On the one hand, people believe that the process is simple and nothing to worry about, while on the other hand, some believe the process is unpredictable and that the odds of approval are stacked against them.

The truth is that, for any applicant, it is possible to gain approval if certain factors are considered and the application is tailored accordingly. Even with a bad credit rating, personal loans approval without security are not out of reach. This is good news, of course, with the availability of the funds raised through such loans, capable of alleviating financial difficulties.

All that is really necessary to achieve guaranteed unsecured loans approval is to have an application that is in order, well structured and convincing, and the key to each of these aspects is knowing what the lender is looking for.

Unsecured versus Secured Loans

The first factor is knowing what exactly the difference between secured loans and unsecured loans is. Basically, it comes down to collateral and the security that a lender has when an item of value is offered in compensation should the borrower default on the loan.

When a loan is unsecured, the lender is at much greater risk of losing money since there is nothing to take possession of in compensation. For this reason, the conditions for personal loan approval without security are stricter. The interest rate is usually higher to counter the greater risk, while the sum limit is lower because the lender does not want to be left at a major loss.

Therefore, the closest to guaranteed unsecured loans approval an applicant can get is to tailor the application to suggest the lowest possible risk.

Most Convincing Loan Applications

There are not many things that an applicant can do to convince a lender that their investment is safe, but requesting a small unsecured loan is probably the best way. For secured loans, it is really just a matter of providing sufficient collateral, but with the unsecured option it is all about reducing the size of the possible losses, and therefore risk.

So, it is considerably easier to gain personal loan approval without security on a sum of $3,000 than on $10,000. It might seem that $3,000 will provide no solution to financial woes but the purpose of the exercise is to build credibility again. A sum that is easy to repay, helps to guarantee unsecured loans approval for large sums in the future.

Once a trend, however small, of clearing loans is established, credit rating improves and trust builds with the lender. Eventually, that $10,000 unsecured loan will be easier to secure.

The Right Loan Terms

Unfortunately, even small loans will come with bad repayment terms, but the monthly repayments are, at least, manageable. As the credit ratings improve, then the terms will become better. Not only will personal loan approval without security become very likely, but the interest rate will fall, the size of the loan sum entitlement will increase and the life time of the loan will lengthen.

While a guaranteed unsecured loan approval is not technically available, with each application considered by the lenders on its own merits, the likelihood of approval is greatly increased.

Getting approval on an unsecured loan is not difficult if the application looks good. Get that right by satisfying their criteria, and the rest will follow.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com

Many contractors who have savings or hope to begin saving and would like to increase the potential return on their investment on savings, should have an Individual Savings Accounts (ISA's). The current maximum that can be placed into an ISA is £10,680, of which £5,340 can be in cash. The other £5,340 can be used for shares. Although the maximum £5,340 has been set for cash, there is no limit within the £10,680 for shares.

Many people may be confused how ISA's are structured and how they can bring such great tax relief for such large chunks of savings, keeping large amounts of money away from the tax man. But a simple meeting with any local branch advisor will help explain and choose the best suited ISA for your individual needs and requirements. Recent finding by the HM Revenue & Customs (HMRC) has shown that aside from the fact that many still don't understand how beneficial having an ISA can be there is currently 15.3 million active ISA accounts. The most since the introduction of ISA's in 1998.

All contractors should consider an ISA as their first choice for ultimate flexibility for investments, as having instant access to savings can be an attractive prospect especially for contractors.

For contractors there are many types of ISA's to choose from:

Cash ISA's: Many will have variable rates of interest depending on the access required. ISA's can have instant access at the teller, online and by phone but may have low rates, whereas fixed rate ISAs are available with higher rates but may require less flexibility and a possible fine for early withdrawals. But are great for short term and free from any fluctuations within the stock market.

Equity ISA's: The opportunity to invest money in a managed fund or chose to make individual decisions on which companies to invest in. There are different areas that managed funds invest in, these are international equity funds, commercial property and corporate and treasury bonds. But beware as stocks and shares ISA's can be considered long term (5+ years) and the investment can fall below the contractors initial instalment as the markets fluctuate.

With contractors facing challenges from the HMRC, with tax, IR35, IR56 compliance and expenses being required it is vital to make use of all available tax breaks that are still available. It is also recommended to use an umbrella company to help process your payroll and maximise your income through using their tax expertise, keeping you on the legal path. Whilst reducing the worry and complexities that are involved with all the legal issues.

Harvey McEwan writes to offer information amd advice on a variety of areas, from technology to holiday destinations. Read through Harvey's other articles here to find out more.

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Taxes are NOT voluntary, the law stipulates that each entity, whether a business or an individual is required by law to file tax returns. Businesses must pay quarterly duties to the IRS. From the standpoint of accounting, taxpayers could use the services of both a tax attorney and a CPA to solve a demanding IRS issues. There certainly are an abundant supply of proficient accountants available and many of them will be able to assist with financial advice related to IRS taxation issues, however their familiarity of taxation laws may be limited. In order to get proper law information, you may need a lawyer and any reputable tax accountant should be able to give you a good referral.

How a Tax Attorney Can Help You

Services provided by the tax attorney falls into two categories.

Tax Planning: Because of the knowledge of duty laws, the tax attorney can help with your financial planning, to help you prevent future taxation difficulties. They will act as a consultant to advise you on the financial path that will be compliant with the necessary revenue laws.

Tax Disputes: A Tax Lawyer will represent your interests and safeguards your rights should you become involved in tax controversies. If you are already facing issues with the IRS or State Revenue, the tax attorney can assist you by resolving on going problems. It is possible that Tax Attorneys may be able to negotiate debt relief with the removal of liens and levies. They should also be able to arbitrate, reductions of penalties or interest. They would handle all negotiations with the IRS or government on your behalf. IRS tax attorneys are normally accredited lawyers who have been trained to focus on domestic or international taxation.With in depth knowledge of taxation laws, they are able to assist with counsel or advice on taxes. Because these professionals are experts at understanding and applying tax law, they can help you find debt relief to reduce the amount owed to the Internal Revenue, and can assist in setting up a payment plans to minimize debt obligations.

Services provided by a tax debt attorney include, but are not limited to negotiating repayment of taxes on your behalf. They are also able to provide assistance on most tax related problems. If you are deficient on your taxes, you should be aware that the policy for the IRS to encourage full payment of all tax debt, and also that there exacting instructions and administrative barriers, before they will accept an Installment Agreement.The services of an IRS tax lawyer is almost absolutely necessary when facing tax related issues such as an audit. Tax attorneys can act on your behalf in a number of capacities that may include negotiating your tax burdens,in property seizures and levies,wage garnishments and bankruptcy proceedings.

When To Hire A Tax Attorney:

The conclusion resolution to hire a tax attorney should be a simple one. Tax related problems can be avoided with the guidance of a proficient tax lawyer who can be maintained with a monthly retainer. Then, he or she can act in the capacity of an advisor, and you can be apprised of impending difficulties. Working together with your accountant, the tax lawyer, can ensure that your affairs remain compliant. The difference between a tax attorney and an accountant or CPA is often misunderstood or under appreciated. Not everyone will need to hire a tax attorney. If you hire an attorney, should you ever be audited and brought to trial, unlike a CPA or bookkeeper that can be called to testify against you in court, anything you say to them is completely protected by the lawyer and client confidentially agreement.

There are several reasons you may need to hire a tax attorney.

The most prominent reason to hire a tax lawyer, is being in difficulties with the IRS. Being audited and confronting the IRS can be traumatic for most of the initiated people.. It can indicate incompetence or ignorance in previous tax returns. Your tax attorney should be able to offer advice on the best legal solutions that may be available to you. Most people will only seek the help of a tax lawyer after difficulties arise and need tax debt relief. Others may wait until meeting with the IRS, and others may attempt to negotiate with the IRS on their own.This is not advisable and can be literally and metaphorically walking into a minefield. There are very few individuals and business owners who can independently deal with the Internal Revenue Service effectively.

Tax Attorneys have been trained and specialised in tax laws and can help individuals and business in negotiating and avoiding problems with the IRS. To find out if you are on the right l path or avoid or deal with tax related issues visit http://check-for-it.com/irs-tax-attorney

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Tax Advice Crucial as Hordes of People Expected to Visit London for Olympics

Experts suggest that landlords start taking tax advice and preparing their properties for rent. Time flies so fast, and the 2012 Olympic Games, which will be held in London, is almost here. The excitement around the nation is rising with just around 300 days more to go.

Landlords and rental property owners should be excited, too. Spectators and athletes, for sure, are going to stay in the accommodation places of London and surrounding areas to be part of this momentous event. What better way to earn and take advantage of this influx of people than offering accommodations?

Although it's still early to tell, UK's economy will benefit from the Olympics. It is certain, though, that offering a flat or even your living space for rent presents the opportunity of making extra money. Becoming a landlord for even just a few weeks during the Olympics can be very favorable.

One tax advice you should pay attention to is based on the Rent a Room Scheme created by HM Revenue & Customs (HMRC). According to the scheme, you can gain tax benefit from renting out a spare room. You can even receive as much as £4,250 per year, tax-free if you rent out a fully furnished room inside a residential property.

Tax Advice: How to be Eligible for the Tax Benefit

To be eligible for the tax benefit, the Rent a Room Scheme has the following requirements landlords must comply with:

1. The room you let must be furnished and must be a room or a whole floor inside your house.
2. The lodger should be allowed to occasionally have access to your family rooms.
3. Meals should be provided.
4. You must not let your whole house.

Even if you're not the owner of the residential property, you can still enjoy the tax benefit. The Rent a Room Scheme states that those who live in rented accommodations can let their space and become landlords themselves as long as their lease allows lodgers.

What's not Covered by 'Rent a Room'?

Another tax advice to follow is making sure you avoid situations that prevent you from gaining the tax benefit.

The Rent a Room Scheme doesn't apply if your home has been converted into a separate dwelling that is already being let.

The scheme also doesn't cover unfurnished rooms.

You can actually still go for any of these leasing situations in each one of these instances you'll have to announce the entire letting earnings to HMRC; spending money on taxes the normal way and thus failing to obtain the tax benefit.

Tips for Olympic Games Landlords

To protect Olympic Games landlords, they should also make sure that tenants show respect and can pay on time. Another way to ensure the let runs smoothly is to check the tenant's employer references as well as previous landlord references.

Performing a credit check can help tell whether or not a tenant can afford to pay. This is very valuable tax advice.

For professional tax advice for your company accounts on filing of tax returns visit our website at http://www.haysdentraining.co.uk/

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The two most usual forms of unsecured personal loans are credit cards and payday or cash advance loans. Many do not recognize credit cards as loan instruments, but that is what they are. The card issuer lends you money to pay for goods or services. Credit cards and personal loans are available to many because the underwriting standards are quite flexible.

Consider the advantages and disadvantages of credit cards.

Credit cards can be found with very low interest rates, sometimes even 0%. And by using them you can gain a variety of benefits such as cash back, flying miles, or merchandise rewards. However, missed or late payments, or going over the credit limit can incur rather heavy fees. Of course, to get one you must have an acceptable credit history and gainful employment and meeting a salary benchmark.

Credit cards are easy to use, they can have reasonable rates if you watch yourself, and they do offer rewards for usage. Sometimes interest rates can become quite high and fees can become usurious. Credit cards have become a standard and important financial tool for most every adult. They must be used responsibly and paid off whenever possible. Students, families, the elderly and professionals should probably have one at any rate.

Consider the advantages and disadvantages of cash advance loans.

These loans usually do not require a credit check and no signing over of collateral or valuable property to secure the loan. Since these loans represent a high risk to the lender, the interest rates tend to be rather high. Because of the high interest rates and high fees, sometimes borrowers can trapped in a destructive cycle of refinancing the loans.

These loans can have funds in an individual bank account within a matter of hours. In a perfect world, no one should really avail themselves of such loans. If an unexpected or urgent need for cash arises, they can be life saver if they are paid off within the terms of the contracts. Otherwise they should be avoided.

Consider the advantages and disadvantages of bank loans.

Banks, credit unions and other traditional lenders offer low interest rates and funds are easily transferred to bank accounts. While these lenders do offer unsecured personal loans, it is very difficult to qualify. Only those with exceptional credit histories, decent income, and a history with the bank are usually all who can avail themselves of these loans.

Consider the advantages and disadvantages of private finance loans.

If you are a qualified borrower who needs a larger unsecured personal loan, say $250,000, these firms can make their decisions based more upon the personal situation of the borrower. They do have high qualifying standards, interest rates can be high, and sometimes the repayment terms are not structured in the most comfortable way. These loans are primarily for those with a unique need or circumstance.

Consider the advantages and disadvantages of peer to peer lending.

This is a new trend in the sphere of finance and may offer a prodigious lending alternative. Markets such as Prosper create a place wherein people can post requests for loans and groups of small investors can gather to fund them. These tend to offer fast turnaround. And, you are paying interest to singular folks rather than large corporations or banks. Interest rates can be as high as 34%. And some of the market places charge fees to both borrowers and investors.

Before taking any unsecured loan, it is incumbent on borrowers to thoroughly check the venue and educate themselves to they do not fall prey to scamsters.

Mary Wise is a personal loan consultant who has been associated with Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Fast Unsecured Loans, and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at BadCreditLoanServices.com

One of the most time-consuming and frustrating things a bankruptcy attorney has to deal with is a reaffirmation agreement. A reaffirmation agreement is a contract between the debtor filing bankruptcy and their creditor to keep a secured piece of property outside of the filing. Many individuals filing for bankruptcy have a once-in-a-lifetime opportunity to become debt-free and start all over. With this in mind, many attorneys feel the debtors should not hang on so tightly to their belongings and take advantage of the total power that a bankruptcy filing would give them.

It's very common for debtors that are filing bankruptcy to call their bankruptcy attorney after the discharge and ask what they can do to get out of their car loan, mortgage or other secured debt. It might be something changed financially in their family like losing a job or a reduction in pay that makes them no longer able to be able to afford the payment. This is exactly why the bankruptcy attorney had this conversation with the debtor during the filing. Most attorneys encourage debtors to give back anything that might be questionable. The time to relinquish property is prior to the discharge in Chapter 7 bankruptcy. When an individual surrenders the property in the bankruptcy, they will be free and clear from all future liability in regards to that property. If the debtor after bankruptcy decides to surrender their home to foreclosure or get their car repossessed the creditor can go after the debtor for any deficiency plus all legal fees. There is nothing a debtor can do to get away from it. It's like putting a final nail in the debtor's coffin.

Most bankruptcy courts require a reaffirmation agreement on all debtors that are seeking to reaffirm a debt. This agreement basically takes away the fresh start that Congress intended when creating the bankruptcy laws. Making the debtor liable for a loan after their bankruptcy seems counterproductive.

The reason this is a touchy subject for a bankruptcy attorney is because, first of all, most Americans are in love with their cars and their stuff. For a debtor to give something back, even though they can't afford it, is a sign of failure to them. Creditors know the emotional side effects of how people feel about their stuff and they use that to get people filing bankruptcy to sign these agreements.

The creditor has a list of requirements to make a reaffirmation agreement legal. First of all, it has to be enforceable under consumer law. Next, it has to be signed and completed prior to the bankruptcy discharge. The creditor is required to notify the debtor in their bankruptcy attorney that they are not required by law to enter into this agreement and state that it is totally voluntary. Before a debtor enters into a reaffirmation agreement the creditor must make sure that they have enough money to afford it, with approval from the bankruptcy court. And the last thing is, the agreement must be in the debtor's best interest.

Under bankruptcy law the debtor should have 60 days to resend the agreement prior to the bankruptcy discharge. When filing bankruptcy a debtor really needs to do some soul-searching, deciding on what's really important in life. Trying to hang on to stuff sometimes will end up in failure. Always use the expertise of a bankruptcy attorney as this is not their first picnic.

The author started http://filingbankruptcynow.com/ which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in bankruptcy filing under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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If you are thinking about filing for bankruptcy, do yourself a favor and think very hard about it before taking that step. Once you file for bankruptcy, it's a long hard road to getting good credit again, and you do have other options if you know where to look.

We all know that times are tough, and many people are having financial difficulties right now with the bad economy. If you have lost your job, most likely you are behind on your bills and it seems like a hopeless condition after awhile. Even when you do find another job, many people are finding jobs that pay much less than their previous ones and still find themselves struggling to pay their bills.

On top of all of this, many debt consolidation companies out there promise to "help" you out by giving you a consolidation loan to wrap up all your bills into one giant loan. The problem with this is, if you still have open credit cards and lack the discipline to control your spending, the problem gets even worse when you rack up more charges. What's a person to do? The key word is discipline - you must find a way to stop spending right away, at least spending money on anything that isn't absolutely necessary to live.

Once you get your spending somewhat under control, it seems as if you will never get out from under your debt, right? This is why so many lawyers and others trying to persuade you to declare bankruptcy - but is that really the best way to go? Things have changed quite a bit in the past few years, and the basic Chapter 7 bankruptcy is much harder to file for any longer. This is where you ask the courts to simply wipe out your debt, at least the "unsecured" debt, and start over. That means for the average consumer with a bunch of credit cards, you could just start over free and clear. Well, at least that used to be the way it worked.

The standards for filing Chapter 7 bankruptcy are now more strict, and a person must have some type of credit counseling before seeing it through. In many cases, if it is possible for you to pay some of your debts, the court may decide that you need to file a Chapter 13 which require you to adhere to a payment plan for paying off your remaining debts. This law was put into effect in 2005 due to too many people abusing the soft bankruptcy laws at the time where everyone automatically got most of their debts wiped out. This has prevented some people from filing, but in today's economy there are many thousands of new filings each day.

What are the risks and downside of filing for bankruptcy? To start with, you may not get your credit restored for many years since a bankruptcy stays on your credit report for 10 years. Any banks or finance companies looking at your credit report will see this and assume you are a bad risk.

The upside is, if you file for bankruptcy and are accepted it will in most cases stall a foreclosure on your house. So if you are having difficulties making your mortgage payments, this could be a potential benefit to you. However, this benefit is more than offset by the higher price of any future money that you must borrow. Even when you do finally get some credit again, you will generally pay the absolute highest percentage rate for the loans, no matter what company is doing the financing. The higher the risk, the more you pay, it's that simple.

In conclusion it is best to avoid bankruptcy at all costs, since the price will effect you negatively for many years to come. Working out a payment plan with your creditors is much wiser in the long run, and the discipline you develop will help you create a much stronger financial future for yourself.

Declaring bankruptcy is never an easy choice, especially since the laws have changed. No matter where you live, get the facts before making this choice. Visit our Florida bankruptcy laws website for more info now.

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Credit cards - Most of us have them, and most of us use them on a fairly regular basis. But a lot of the time, we don't realise how we are being taken advantage of. The more you know about your credit, the more you can survive the pitfalls and thrive financially.

It's important to know...

WHO works for whom

Believe it or not, credit card companies are actually meant to work for YOU. They all vie for your business so that they can make money off the bill that you're not paying. It's stiff competition out there, with companies offering loads of incentives to win your approval. Cash back, reward travel, free gas-you have more power than you think, even when it comes to negotiating your interest rate.

But to do that you first have to know....

WHAT you're getting yourself into

Good credit is essential. When you're looking to take out a loan for that dream house, you'll never get it without good credit. And the better your credit, the more pull you'll have when negotiating your interest rate. It's a catch 22-if your credit is already good, then the easier time you'll have keeping it that way.

But the only way to keep your score high is to know....

WHEN to pay and HOW much

Ideally, you'd pay off your bill at the end of every month. Realistically, you barely make your minimum amount due. Card companies love this and always put themselves first so that each month, your money first goes to paying off the interest so that you eventually build more debt and owe more money over time.

So it's important to know...

WHERE the fees hide

Card companies will entice you with a promise of "No annual fee" but then turn around and gouge you two months later. Or even worse, credit card companies are notorious for pitching "0% interest rates" or "no late fees" and then when you receive the card, the terms in the agreement are nowhere near what you originally signed up for. This tactic is so common that it has become known as the "bait and switch" and can be avoided if you read your card agreement carefully.

But credit cards aren't all bad, especially if you know...

WHY you have one

Credit cards offer a lot more protection that debit cards. And if you maintain good credit, you'll receive loads of kickbacks. Some people are even able to get loans with little or no interest rates just based on their high credit score alone.

So while having a credit card does leave you vulnerable to overspending and loads of debt, remember that if you keep up with your monthly payment and pay off your debt at the end of each month, all the fine print reading could pay off huge with cash back, miles, and other rewards.

If you're looking to finally rid yourself of debt and are looking for advice on bankruptcy, visit the ClearDebt IVA site. Apply for an IVA, an Individual Voluntary Arrangement with ClearDebt and get your debt under control.

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For many of us, the term "financial hardship" is just the politically correct way to say "I'm broke!" No one plans to be broke, no one plans to stay broke. When things get that difficult the only planning that should be done is working on those things that are going to improve the situation. When a person has reached a point where considering bankruptcy is off the table because it's simply unaffordable, you might hear them say something like, "if I could afford to pay for bankruptcy, I could probably afford to pay my bills." This statement may sound sensible at first glance, but it is something that needs realistic examination.

When the phone is constantly ringing with calls from collection agencies, collection letters are stacking up on the kitchen counter, and you are doing your best to make ends meet each week, it's not likely that filing bankruptcy is something you might consider at this point. You know that being broke is temporary and things will improve. How you may have arrived at this particular juncture is of no importance, taking steps to remedy the situation is all that matters. Filing bankruptcy seems illogical for many reasons, not the least of which are that you can't afford it, and you have no money available that the collection agencies can attach.

The fact that you have no funds that can be frozen, assets that can be attached, or wages that can be garnished may make the efforts of collection agents seem feudal. However, those factors will not change the fact that money is still owed to creditors, late fees and interest rates will still compile, and your credit score will continue it's downward spiral. Why then, would I recommend that you make every effort to seek the services of a bankruptcy attorney when you can least afford it?

Although the calls from the collection agents have slowed, perhaps stopped, and fewer collection letters have been arriving in the mail, don't think for a moment that the collectors have forgotten or given up. They are watching and waiting for you situation to improve and just as you can be certain the sun will rise in the East and set in the West, you can be certain that the collectors will be at your doorstep the moment things begin to improve.

Bankruptcy laws were written to protect consumers who are struggling with debt. Once you have filed for protection under Chapter 7 of the bankruptcy code, collectors are prohibited from contacting you or attempting to collect debts. This is done, in part, to give consumers the ability to start rebuilding their financial life again. If you find that you are beginning to "get out from under" and you do not have this kind of protection in place, the collectors will be doing all they can to get as much as they can, as fast as they can. They have no concern about the well being of you or your family.

Meeting with a bankruptcy attorney, even though you can't afford it, is perhaps the wisest move you can make. However, you should approach the attorney with honestly and clearly express your circumstance. You will most likely be pleasantly surprised by how the majority of attorneys will respond. However, I suggest that you discuss your situation with an attorney over the phone rather than waste your time with a bankruptcy attorney that will not work with you.

Bankruptcy attorneys understand that most clients seeking bankruptcy are not going to walk into their office with pockets full of cash. However, they generally are used to working out payment arrangements with clients. Prior to filing bankruptcy, many attorneys can and often will act on your behalf when dealing with creditors. It's important that during this time you begin to lay the foundation for you bankruptcy filing. There's something to be said about the old axiom, "be prepared." Taking these steps in advance will go a long way in allowing you to manage your finances once things begin to improve, and provide considerable stress relief in the mean time.

If this is the situation that you are currently in, call a few bankruptcy attorneys right away. Debt is like a toothache, it won't get better on its own.

David Miller is a freelance writer and marketing consultant. He has written extensively about bankruptcy, debt settlement, debt consolidation, credit and credit cards, collection agency abuse, consumer law, credit card defense, FDCPA guidelines and complaints, loan modification scams, and foreclosure.

He contributes regularly to financial and real estate blogs.

He currently edits several websites and is a contributing author to many of them including http://lawfirmslongisland.com/

His articles about foreclosure, debt discharge, student loan debt and many other topics in the area of bankruptcy, credit and can be found at http://lawfirmslongisland.com/ along with links to other resources which he has been a contributing author.

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The mass majority of people in debt for reasons other than the sudden loss of a job or a major illness do not consider all of their options before choosing to declare bankruptcy. In today's economy, there are only a handful of debt free households.

Everyone who has experienced any amount of debt has wished all their troubles would disappear and they could start afresh debt free. People misinterpret bankruptcy as an immediate way to eliminate overwhelming debt and they leap at the opportunity, believing they are wiping their slate clean. In doing so, they fail to take into consideration the long term negative effects bankruptcy has, and they overlook all of their more beneficial options.

Bankruptcy is a legitimate way to partially or completely eliminate certain immediate debts, but this option is not without consequences. Banks will be extremely cautious about giving out loans to anyone who has declared bankruptcy. A person will not qualify for a home loan for at least two years or more after they declare bankruptcy. Once they finally receive a loan, the interest rate will most likely be very high. Credit cards will also be more complicated. They will only be allowed to take out small amounts of money on the cards, and it will take years to re-establish a noteworthy credit.

Before a person considers declaring bankruptcy, there are some steps they can take on their own to try and balance their bank account out. Some simple steps to take would be to start drastically eliminating everything that is an unnecessary expense, like a boat, gym membership, high priced and unpaid for sports utility vehicles, and spa treatments. Then, take the money that you are saving and use it to pay off loans and debts.

If this is not enough to pay off the debts, consider getting a part time job. Next, schedule a meeting with a professional credit counselor who can help form a more accurate budget and negotiate new payment plans with creditors. In most cases, banks and creditors will do whatever they can to help you repay them because bankruptcy has negative effects for them as well.

Bankruptcy should not be a consideration for those who have a steady income and some form of means to pay off their debts. The options previously mentioned, along with the hundreds of options left unmentioned, should always be considered before anyone makes the decision to declare bankruptcy.

The decision to declare bankruptcy is never an easy one but if this is what you need to do, make sure it is your option of last resort. There are almost always other options open to you that do not have the long term negative impact that filing bankruptcy will have on you and your credit report for many years. Your best bet is to get a free bankruptcy evaluation so you can know where you stand and what options you have. For more insights and additional information, as well as to get a free bankruptcy evaluation, please visit our web site at http://www.bankruptcy-data.com/

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The Dow was at 11,000 5 years ago. And as I write this, it's at 11,000 today! The Dow's price hasn't changed but the amount of stock held short (basically people betting that stocks will go down. Read below for an explanation of how short selling works) is higher than 5 years ago (Data Explorers.) What's up with that?

Why are people betting against stocks? We have a U.S. economy that isn't going well. Europe is trying to straighten itself out. Our government can't get anything done. We have no job growth. And home prices are still trying to stabilize.

The way to make real money in stocks (I am referring to buying stock index funds) is to buy or sell stocks in anticipation of news that isn't already factored into stock prices. So the Dow is at 11,400, not 14,000. Some of this bad news has got to be already factored into stock prices. Investors have given up on stocks, pulling $600 billion out of them in September of this year, putting the money in cash and bond funds. The PE ratio (that's a valuation measure) for stocks is at 12, below the average of 15. And interest rates are major low today.

• What if all the bad news is already factored into stocks?
• What if our economy does not double dip into recession?
• What if the European leaders can develop a plan to strengthen their banks?
• What if the increase in short selling is a sign that more people are coming late to the game of short selling?

Maybe the time to short sell or bet against stocks was when the Dow was at 14,000.

I'm thinking what would Warren Buffet do? The last time I had drinks with him (I wish!) he told me to buy when there is blood in the streets. And that's what Buffet is doing. He's going against the grain, against the herd, against the increase in short selling. He's using his own money to buy stock in Berkshire Hathaway because he sees value.

Here's how to short sell and how it works:

1. You borrow someone else's shares.
2. You sell them in the open market and keep the cash from the sale.
3. You wait for the price of the shares to drop. You then buy them back at a lower price, spending less money than you got from point #2.
4. You give the shares back to the person you borrowed them from, and you pocket the difference.

So why would you short sell something? Simple, because you think the price for whatever you are shorting is going to go down.

When you short sell something, you are selling it, which may drive the price down. And when you buy something, you may drive the price up.

So what happens when you short sell something and it doesn't go down, but it goes up? At some point you have to cover, and buy back the stock in the open market, which further drives the price up.

And that's the long and short of it!

Justin Krane is a certified financial planner who shows entrepreneurs how to unite their money with their life and business. Go to http://kranefinancialsolutions.com to receive your free Krane Financial Planning Toolkit -- great financial tools to help you with your life and business finances.

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