Chasing dollar…..always

Archive for January, 2011

Can you invest during inflation?

Inflation is a dreaded word for many people. As the saying goes, “in inflation everything gets more valuable except money”. It can sound the death-knell for the financial position of many individuals. So does it mean that you should not consider investing your money during inflation? Wrong. Planning out some wise strategies can help you with investment opportunities during hard times also. Read on to know how you should go about it.

During inflation, you can consider investing in inflation indexed securities. The other option is treasury inflation protected securities. The reason is that these always move with the inflation, i.e. the investment is not affected by inflation risk. The Treasury inflation protected securities (TIPS) are a good option to consider as these have the backing of the government. The good thing about them is that their par value increases along with inflation but the interest rate is not affected. There are different types of TIPS available and you should seek the best one for yourself, the one that is suitable for your financial position. You can purchase these from the government. Inflation Indexed securities can be purchased in the form of bond and notes. These give the user the advantage of a higher return than the inflation rate if it is held till maturity.

If you are somebody who is planning to buy property during inflation, then the best thing to do is to select the property with fixed mortgages. Buying property with a fixed mortgage protects it against the risks of inflation.

There are a multitude of securities and assets that can protect you against inflation. Gold mining stocks are also a good option to consider. Precious metals are also preferred but gold remains the topmost choice for most of the people.

With so many options to consider, you can very well become confused with which investment option to go for. If you are unsure, then you can seek the advice of a financial advisor who can help you in taking the right investment decision.

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Resolve your debts by debt settlement

The last 30 years has seen an exponential rise in the growth of credit card industry. This has also led to the massive increase in consumer debt across the world. There are many options of debt relief available, viz. debt settlement, debt consolidation, debt negotiation etc. Let’s take a closer look at debt settlement, the most preferred option of resolving debts today.

How debt settlement works?

Debt settlement programs help both the creditor and the loan taker mutually if done in a proper way.  In the process of debt settlement, the creditor accepts a sum lesser than what the loan taker actually owes him.  The creditor generally agrees to this compromised payment because he will actually stand to lose all the money if the customer files bankruptcy. If you are not sure about settling your debts yourself, you can take help from a debt settlement lawyer. The lawyer will negotiate with the creditors on your behalf to lower your payments and reach an amount acceptable to them. A skilled lawyer can reduce your payments by 40%-60%.

Duration

The duration of the process of debt settlement depends upon the total number of debts, the kind of debt, the total amount of the outstanding debt and the amount the debtor can afford to settle. Generally, settlement cases take 15 to 36 months to complete. The more you can pay, the earlier your debts get resolved.

Benefits

Debt settlement helps you in the following ways:

1) You do not have to pay the total owed amount
2) Your debts are cleared much faster
3) You avoid filing bankruptcy
4) You get rid of creditor harassment.

Pitfalls

But remember that debt settlement damages your credit score when you first enroll. However, this damage is not permanent and starts to recover as your debts get settled. You have to take care to stay away from scam debt settlement companies. Ensure that the company is a genuine one registered with the BBB.