What is Equity Investment?

In the world of finance and accounting, equity may be defined as the residual claim or interest of the junior class of investors in assets, after all liabilities are taken care of. In other words, an investor buys a share of stock in a company, contributing to the the overall worth of the company. This entitles the investor to a portion of the profits, once other expenses are accounted for, enabling the investor to receive a return for the money.

Generally, equity investment references the purchase and holding of stock shares in the stock market by individuals and firms that hope to see income from capital gains or dividends as the stock value increases. It may also mean participation as an owner in a private or unlisted company or a start-up, a company that is about to be created or has just been created.

When the investment is in a new company, the term equity investment goes under a different name: venture capital investing. People understand that this type of investment is conducted at an increased risk than those investments which are placed in companies which have a track record and are already a going concern.

Equities which are in private hands, such as an individual owner, usually are held through mutual funds or another kind of pooled investment type. You’ll find listings for these in financial newspapers or magazines, quoting prices of the stock. Usually, these fund management firms handle mutual funds. Such companies include Schroders, the Vanguard Group, or Fidelity Investments, but are by no means limited to these groups. Holdings in groups like these enable private investors to have the advice of professional fund managers as well as to enjoy the diverse nature of the various funds.

If a private investor didn’t want to go through a fund management firm, then there are other choices. In the case of large private investors or pension funds, the shares may be held directly; in this case, clients own portfolios which will contain segregated funds instead of, or in addition to, pooled funds, such as a mutual fund alternative.

ShoeMoney System for Building Wealth

Methods to build your wealth on the Internet appear to be everywhere. If you’re like most people, terms such as monetization methods, paid subscriptions, affiliate marketing and contextual advertising, are not much more than a blur to you, something like listening to a teacher talking in old television specials of Charlie Brown, so much “whah wha wha.” However, there is one program at least that attempts to make sense of it all. The Shoemaker System is a training program at the entry level which teaches people how to acquire money on the Internet step-by-step.

The web entrepreneur who developed this program is Jeremy “ShoeMoney” Schoemaker, who founded ShoeMoney Media and is the co-founder of a service known as AuctionAds. Just three years ago, in 2007, Schoemaker and his business partner, David Dellanave, began AuctionAds, which is an affiliate marketing service to eBay. The service won an eBay Star Developer Award. In 2007, Schoemaker claimed the blog he wrote generated ten thousand dollars each month by selling direct ads. On October 1st, 2008, Schoemaker found fame when he posted a picture of his check from Google for one month of clicks, a check that totaled $132,994.97. He began the ShoeMoney System on January 22, 2010.

The system does not discuss theory, but instead focuses step-by-step on what Schoemaker or ShowMoney does in his own business online. The online tutorial includes a person is not a marketing expert on the Internet; the person isn’t even that knowledgeable about the the Internet itself, someone who isn’t even familiar with social networking sites such as Facebook or Twitter.

Why include such a person? To demonstrate that anyone can use the ShowMoney System, regardless of the level of prior experience. The program follows the novice as she’s taught how the system works. If you didn’t know the terms such as monetization methods or affiliate marketing before, you will have a greater understanding of them after you’ve finished reviewing the ShowMoney System, in addition to many more terms.

Unlike other systems, ShowMoney doesn’t claim you’ll make millions using his system, but it does suggest you might be able to replace your current income and work from home.

Where can I purchase a prepaid credit card?

Prepaid credit cards are a great alternative for those who have had credit problems in the past. One of the great advantages to them is that they can help in controlling your spending habits, by placing an absolute limit on what you can purchase. That’s the basic idea, anyway, but they have become a little complex, or at least as complex as anything related to credit. There are a couple of different kinds of prepaid credit cards, and they’re both up for purchase in different places and in different ways.

The most elemental kind of prepaid credit card is just that. You can purchase these at kiosks in shopping malls as well as at gas stations and convenience stores. Simply ask at the counter, and the sales clerks should be able to direct you. There are even vending machines that dispense these in various locations. The good part about these is that they are exactly what they say they are. If you put 20 dollars on the card, then that’s what you have. However, there has to be a drawback to everything, and on these, for many of the cards there are fees related to the money placed on the card, and sometimes the transfers can get quite expensive. There are also cards available for set denominations that don’t have a fee connected, but they have very limited uses. They are also not particularly useful for anyone looking to establish a clean, new credit history, because they don’t even show up on a credit check.

The other kind of prepaid credit card is one that’s available from the credit card company directly. A simple search from VISA will reveal at least a dozen choices for prepaid cards. All of these require an application, which itself isn’t a very lengthy procedure. Again, these are not very useful for establishing a credit history, but they are a beginning. They could be considered a kind of a training card for those purposes then. However, for those with bad credit, these can be as difficult to get as a regular card, and sometimes seem as though they have none of the advantages, but all of the hassle of a regular card.

They are an option, then, as an alternative to a credit card, and can be useful. Their best uses, however, are for helping consumers to discipline themselves for a future where credit cards might be something that can be integrated into their financial lifestyle.

What Country has the Highest External National Debt?

While no one can address the debt of countries on worlds in other solar systems, you might think that with the gross external debt of 13.454 trillion and an annual GDP of 14.26 trillion that it would be safe to say that the United States of America has the highest external national debt of any nation on Earth; however, this guess would be wrong.

What is meant by the term external debt when applied to a country? And how does one determine that figure for any given country? External national debt may be described as the total debt owed, both public and private, to non-residents of the country, which may be repaid in either foreign currency or goods and/or services. Public debt is thought of as credit or money owed by any level of the government, whether its federal, state or municipal, and private debt may be considered the credit or money owed by private corporations or private households. To determine the gross external debt (also known as the external debt per capita), the total debt of the country must be the total debt divided by the population of the country.

For that reason, the United States, even with an external debt of 94.3 percent is still only 20th on the list. Out of the biggest 75 economies on the planet, this number represents slightly more than the world wide average of 90.8 percent. Most of the countries with high external debt, though, do belong to Western-European or North American countries, with Switzerland and the United Kingdom taking the number two and number three spots, with an external debt of 422 percent and 408 percent respectively.

Of the larger economies, the country with the highest external debt used to be Ireland, with a debt of 960.8 percent, although Iceland may have surpassed its nearby island country with 998.64; however, when you consider all countries together, regardless of the size of their economies, then the highest external debt on the planet belongs to Luxembourg, at an astonishing 4,974 percent.

What is a credit card?

Credit cards are everywhere these days. If anyone has an email account from any of the free email servers, chances are good that the majority of spam messages have something to do with credit and credit cards. This might bring to mind a number of complex questions about credit cards and how they work, and some of these can be answered by addressing the most simple question of what, exactly, is a credit card?

The idea of the credit card has its origins in the beginnings of commerce. The idea of purchasing something on credit might seem like a new innovation, and thanks to the advancements of technology in online banking, there are many innovations, but credit itself is very old. Getting merchandise, land, or even a drink at a pub, for no money upfront and a promise to repay is as old as civilization.

The way we think of it today, however, has more to do with the banking system than it does with a deal between two individuals. It began in the 19th century, as the modern idea of banks were just beginning to take root. The first examples of what we think of as credit cards started in the next century, in the 40s and 50s, with the Charge-It card and the Diner’s Club card. These were for purchases made at very specific locations, where the restaurant and shop owners had special arrangements with the banks to be reimbursed for customer purchases.

In this sense, then, they were very limiting, but it was also a much more secure way of thinking about purchasing, both on the part of the retailer and the consumer, because one could not purchase more than what the bank balance showed. Today, however, it’s a very different story.

Now credit cards are issues based upon the individual’s projected ability to repay. This means that one’s earnings and purchasing histories are taken into account to come up with a credit limit. It sounds simple enough, but now it’s based on money that does not yet exist, and this is where consumers can potentially get into trouble. If the bank says that there is a likelihood of money in the future, then there’s also a greater likelihood for purchasing now. It’s simple enough to see where this could lead. The banks also issue service charges, based on interest, for any debt left unpaid, and over the months, it can mean a fairly hefty price to be paid, and oftentimes one purchase can easily end up costing twice as much as the ticket price.

How do credit cards work?

In this day and age, where there are so many concerns about debt in general, on a national as well as a global scale, more people are starting to find themselves at crossroads about their own personal finances. Credit card debt is a very large part of the everyday life in this culture, something that lives in the background until there are crises, minor or major. Times like this, people often start to ask the basic questions about economic structure, and one immediate question is: how do credit cards work?

The first credit card was offered by West coast banks in the 1920s. The idea here was that some people were considered good credit risks, and could apply for loans at banks. As a courtesy, this extended into offering a card where they could use that for very small amounts, with the promise of reimbursing the bank later. There was a small interest charge applied, and that’s the origin of the credit card system today. By the 1950s, there were more credit cards being offered, notably by the Diner’s Club and American Express. Visa and Master Charge, later to become Master Card, followed suit, and eventually the Discover card.

The reason that credit cards work so well for the banks, is that they can offer people the chance to buy things they wouldn’t normally be able to afford, with the legal obligation to repay with interest. Usually the interest is quite high, and this it the APR to which customers need to pay attention. A low APR can be a good thing, but they usually only last for a year, before it goes up, and often to 19-23% interest. As long as there is a balance on the card, the customer is paying interest on that amount.

The culture has become accustomed to carrying large amounts on their credit cards, so much so that it’s become an everyday occurrence. It doesn’t seem out of the ordinary at all to have thousands of dollars owed to several different credit card companies at once. People are paying interest on money already spent, and often this can take years to pay off completely, at which point there will often be more credit cards in their possession, starting the cycle all over again. They can be very convenient for people who use them in emergencies, but they are also a great generator of income for the banks lending the money.

ShoeMoney System Theme Song Contest Winner

The month of March was an exciting one for the members of the ShoeMoney System.  The internet based company held a contest to find a new theme song with the prize being $1000 as well as tickets to a party at Playboy Mansion (that was a big draw for a lot of the contestants).

Since its beginning in 2003, ShoeMoney has become one of the largest marketing services.  They even offer services to individuals to help them achieve the same success.

To view the winning video, visit the ShoeMoney blog at shoemoney.com.

How to Pay Off Credit Cards

There are a number of simple steps that will allow you to take on the issue of how to pay-off your credit cards and get back in the black so you can once again become financially stable.

First, you must pay more than the minimum required payment every month. By only paying the minimum, you are doing exactly what your credit card company is hoping you’d do, because this is the only way they make money. The longer you take to repay off the credit card, the more interest they make. You need to pay as much as possible every month. If it takes skipping a lunch out or not buying that mocha latte, then do so. Making a few temporary sacrifices will dramatically save you hundreds.

If you have one credit card with a lower interest rate and you haven’t maxed it out yet, transfer all your other credit card debt to that card. If it is maxed out, make the higher payment on that card and once you have reduce the maximum limit, then transfer as much as you can from the higher interest credit cards; keep doing this until all your credit cards with a higher interest rate have a zero balance, then either negotiate for a lower interest rate on those cards, or cancel them. Also, take advantage of promotional lower interest rate credit card offers and transfers, if the maximum limit allows all the debt you have, then transfer them over to the new lower interest rate. Keep in mind that the new lower credit card rate is only a promotional rate, usually they are good for one year, then the rate will raise to possibly a higher rate than what you have now. So, you must pay off the promotional credit card within the year. But, if that’s not possible, keep an eye out for more promotional lower interest rate credit cards and transfer the funds to that card.

It’s wise to cash out any investments, stocks, or savings to pay-off your credit card, the interest you are paying on your credit cards is higher than the interest you’re earning in your stocks, investments or savings account. Basically, paying off your credit card debt is tantamount to getting an 18% return. You can also borrow against your life insurance; borrowing against your life insurance the interest rate is usually below commercial rates and below your credit card interest rate and you can take your time in repaying the this loan, but do repay it. 401(k)s are another source for you to borrow from, you usually can borrow up to 50% of the accounts value and the interest rate is usually one to two points above prime, which is still cheaper than the interest found on your credit cards.

If you can’t pay more than the minimum, you don’t get promotional lower interest rate credit cards in the mail, you don’t have investments, stocks, savings, life insurance policy or a 401(k) plan to cash in or borrow from, then it’s time to hit up your family members. You can work out a payment plan and they most likely won’t charge you an interest rate. If family won’t come through for you, you might just consider bankruptcy, which really is a last resort, because a bankruptcy on your credit report does not fare well, and any future credit you might qualify for will be double or even triple the interest rates you have today.

How do I consolidate my credit cards?

Credit card debt is an increasing financial worry for people across the country. Growing economic concerns are compounded in a mathematical structure similar to that of many credit card interest rates. And people are finding themselves in situations that seem hopelessly trapped in a cycle of credit card debt. Naturally these same individuals are seeking ways of consolidating their credit cards and have questions about this process. The consolidation of debt can be a great move and benefit to individuals who are in too deep and can’t make more than minimum monthly payments or are even unable to manage that.

Depending on the amount of debt that one has and also the number of cards in their possession, the way in which they consolidate their debt may very. If you are current with all of your cards and have one that has a small balance with a large limit and great interest rates for credit transfers it may be possible to place the bulk of one’s debt on that card. This is effective only in specific circumstances and one of the important factors is that the designated balance card must have a lower interest rate than those that are being transferred to it. This is commonly the case when high rate cards can be transferred to a zero interest status on the larger card. However, it is important to research the actual interest status and be sure that this is the right answer for you.

Other credit card and various debt holders are advised to seek the counsel of a credit consolidation service. There are many agencies that perform this service and it is important to seek out one that isn’t there strictly for their own profits and provides an adequate social service. These companies can negotiate with various credit issuing companies to reduce payments, balances and interest charges. All of these payments will then be combined into one manageable monthly payment for the consumer. This is an extremely effective option, though it may also cause temporary negative changes to your credit rating. With any major change in financial structure it is important to research your options and choose what is right for you and your situation.

Can You Legally Stop Paying Credit Cards

It is not considered a crime to stop making payments on your credit cards in the United States. The last time someone was thrown in jail for their debts was back in the 1850′s. But, your creditor can take you to civil court to obtain a judgment against you, which is basically acknowledging that you do indeed owe the debt. From there, legal actions can be taken to collect the debt, as in wage garnishment and liens on any of your assets. It is rare for credit card companies to pursue these drastic measures, but there are many instances where they have because they figured they could get most of their money back.

After the credit card company has a judgment against you, then they need to make another court date so they can actually be assigned a ‘Writ of Execution’, in order to perform collection processes. If you are summoned for this court date, and fail to appear, you will have a bench warrant issued for your arrest, because by not showing up, you were in ‘contempt of court’. You are needed in court to get all the facts laid-out, this is where they get your employment information for garnishment and for asset evaluations for the purpose of liens. Keep in mind, most collections never make it to this point, depending on your circumstances. For instance, say you’re now unemployed and have high medical bills, or are now on disability with a limited income. The Federal Government has a minimum wage per week limitation and if you fall below that, the credit card company may not collect from you.

Credit collectors will try and make you believe it’s illegal to stop making payments, they will even threaten you, because that’s their job. But, there are rules and regulations that collection agencies must follow and you can look these up at the ‘Fair Debt Collection Practices Act.’ If you find they are going above and beyond the regulations, you have the power to file a suit against them. One example of going beyond the regulations is if the collections agency has your phone number, they can not call up your employer, friends or family, but you do have to request they not call anyone but you.

By all means possible, no matter how ugly the collection process can get, make payments towards your debt, even if they say that amount is not enough, send in the payment regardless. Your credit rating will reflect this and not be as bad, plus, you’ll feel better knowing that you are a responsible person.