While bankruptcy may seem like an easy way to get out of paying bills, it is really not such a good idea if at all avoidable.  Once bankruptcy is filed, the credit of the filer is ruined.  This means it will be difficult to get a loan for anything such as a car, house, etc.  In the U.S. bankruptcy is under federal jurisdiction, with individual states filling in the blanks.

There are six different types of bankruptcy in the U.S. covering several different types of situation.  Chapter 7 includes the basic liquidation for individuals and businesses, while Chapter 12 calls for rehabilitation for farmers and fisherman.  Chapter 15 focuses on ancillary and other international cases.  The chapters in between provide plans for individuals filing for bankruptcy who have a steady income (Chapter 13) and rehabilitation used primarily for business owners (Chapter 11), among other criteria.  The most common types of bankruptcy filed in the U.S. are Chapters 7 and 13, with Chapter 7 making up 65% of bankruptcy filings.

To better understand bankruptcy, take a look at what happens should someone file Chapter 7.  The individual must surrender all non-exempt items to a trustee, who then liquidates the items and uses the money to pay off debt.  Exempt items include an older car, household goods and clothing.  Many people possess only exempt items and therefore have to surrender nothing.  An individual is only allowed to file Chapter 7 once every eight years.

1.)  9/11 economic stimulus package by Bush(2002)

As the world saw World Trade Towers crumble to dust, while 2,973 innocent lives laid down to peace, the attack also made a significant economic impact on United States. President George W. Bush then signed a multibillion-dollar economic stimulus bill into law on March 9, 2002. The bill accounted for the boosting the economy and working in the field of providing employment, encouraging business investments and so on.

2.)  Ebay and PayPal tie a partnership knot(2002)

The combination of an auction giant and an emerging electronic payment system with a deal valued at $1.5 billion became the prime key to eBay’s growth in the online marketplace. Currently, PayPal operates in 190 markets, and it manages over 73 million accounts. It has been reported that PayPal’s total value of transactions in the first quarter of 2009 was nearly $16 billion, 10% up, year over year.

3.)  EMC acquires VMware (2003)

Storage specialist EMC acquired Vmware for about $635 million. The world leader in information storage and management acquired the software company VMware that helped EMC reach further into the world of utility computing. As for EMC, the company achieved a significant market authority that it would never have commanded otherwise solely. Together they have taken the IT industry to great levels with server virtualization thus paving way for development of new applications and technologies. With the recent trio with Cisco, the three plan to accelerate Pervasive Data Center Virtualization and Private Cloud Infrastructures.  With 2008 revenues of $1.9 billion, more than 150,000 customers and 22,000 partners, VMware is the leader in virtualization.

4.)  Google  IPO(2004)

This was first time ever Google had strangely proposed initial public offering of its stocks that actually turned many Google employees into millionaires instantaneously. . The Google IPO that took place on 19 August 2004, offered 19,605,052 shares at a price of $85 per share. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. Google saw an outstanding stock performance after its first IPO launch when its shares hit $700 on 31 October 2007.

5.)  China emerges as World Financial Power in 2005

According to economists, China’s GDP grew 10.0% in 2003, 10.1%, in 2004, and even faster 10.4% in 2005.Country’s per capita income has grown at an average annual rate of more than 8% despite the global recession.  Producing $7.9 trillion, it places itself as the world’s third largest economy after U.S. and Japan. The most populated country is actually the largest banker of U.S. with its $800 billion.

6.)  UJF + Mitsubishi to form the Bank of Tokyo-Mitsubishi UFJ(2006)

Well this merger is said to be one of the most important financial event of the decade that created the world’s largest bank in terms of total assets. The Japanese bank BTMU , was launched on 1^st January, 2006 through the merger of The Bank of Tokyo –Mitsubishi Ltd. And the UFJ Bank Ltd. BMTU’s has more than 600 domestic branches and agencies while 99 international branches all across the globe.

7.)  Billionaire Warren Buffet’s Billion dollar donation(2007)

I know many of you may not take donation by world’s third richest man as a surprise. But why I count it amongst the top financial events is because giving away 83% of your multi-billion dollar fortune as donation is worth major acknowledgement. Billionaire investor and Berkshire Hathaway CEO Warren Buffett made history in June 2006 as he announced the donation worth $30.7 billion for the Bill & Melinda Gates Foundation. The true philanthropist has lived all his life with humility and simplicity. Fortune magazine praised Buffet saying, “Typical Buffett: rational, original, breaking the mold of how extremely rich people donate money.”

8.)  The rising housing and stock market ( 2007)

Well probably we were heading towards an economic depression soon but 2007 was a year that also saw the landmark financial moment when the Dow Jones Industrial Average broke two records in just a year. On April 27, 2007, the Dow created a milestone as it closed above 13,000, first time ever in the economic history. Markets continued to grow and Housing prices soared high. And just few months later on Oct 9, Dow hit another all time high closing of 14,164.53. But the bitter memories of what happened few months later and how the world economy smashed and plunged into the pool of global recession, are still afresh in our minds.

9.)  ABN Amro take over by RBS(2007)

A consortium comprising RBS, Fortis, and Banco Santander, acquired the Dutch bank ABN AMRO in 2007.This was the biggest banking takeover in history worth US$ 100 billion. The bank was one of the largest financial institutions in the world that had significant presence in European nations.

10.)  Obama economic Stimulus Package (2009)

The recession created an alarming situation amongst the investors and Obama just did not want people to lose their trust on the finance industry. The $787 billion economic stimulus package was thus approved by Congress in February, 2009 that included federal tax cuts, expansion of unemployment benefits and other social welfare provisions. It aimed 1.4%-3.8% GDP growth by the end of 2009. Well while it hasn’t reached its set target but Obama’s effort to rebound the economy did reap some fruitful results.

My list may not match with your preferences and I may have missed out some more potential events in the list. But as for the ones mentioned above, these do hold a paramount importance on the pages of the history of the last decade. Oh while it isn’t over as yet, we still have chances of some major event to create another economic forte. Hoping for the recession to finally wrap up and dispatch from the economic curve, we anticipate another decade to witness more awesome financial events.

How do you know what your past credit is?  If you have had a credit card or other loan and been on time with payments without racking up too much debt, then you probably have a pretty good credit history. But if you have either racked up a lot of debt or have no credit history to speak of, getting a loan can be a daunting task.

If you have never gotten a loan before, you want to choose a company with personal costumer care.  They will help you decide which type of loan to get, as well as educated you on your credit score and credit history.  Customer care can be a big relief, especially when applying for a big loan, such as a loan for a house.  You need to know the full ramifications of what you are getting in to, and even if you good at reading the fine print there can be several confusing aspects to loan applications and loan acceptance that you will need clarification on.

Once you are an ace at applying for loans, you may consider going through an internet company or a large loan company where you are not guaranteed the same lender every time you have a questions.  Such large companies also often have automated services to assist you instead of flesh and blood representatives.  If you feel comfortable with acquiring a loan this way, then go ahead.  You may not be able to negotiate as much as you would with an individualized representative, but if you have done your research and are content with the offered loan rates, then feel free to go the less-personal route.

In the most common terms, a mortgage is a method in which an individual, or business as the case may be, can purchase real estate without paying full price out of pocket.  The mortgage itself is not considered a debt, however it is considered a security for the loan holder over the borrower.  The security lies in the fact that the money borrowed will be paid according to the agreed upon terms, or the loan holder will be paid when the property is foreclosed on if payments cannot be made.  The loan holder holds the papers on the property until all terms of the mortgage have been met, at which time the borrower will own the property free and clear.

Mortgaging in some form is observed in most countries.  Although mortgaging is most commonly associated with real estate purchases, it can also be applied to other large purchases such as ships, although some jurisdictions dictate only land may be mortgaged.

Obtaining a mortgage can be a tricky process, and one or both parties involved may require the assistance of a lawyer.  A lawyer can explain the entire workings of the mortgage and insure that the borrower fully understands the ramifications of the deal in which he or she is about to partake.  Before a lawyer is present or a house is purchased, it is best to do some research.  There are mortgage calculators online that can better help a buyer understand the financial obligation of a mortgage.

Well, there are tons to choose from and they are all tailored to your specific needs. If you have a great job and money isn’t an issue, you can make higher payments and possibly pay off your loan in as little as 10 to 15 years.

For many people though, they don’t have great jobs and need to best plan for their budget.

Most cheap mortgages differ in just a few ways. They may require balloon payments up front or toward the end of the loan period or they might be influenced monthly by ever changing interest rates.

Fixed rate loans are very popular because you are guaranteed to have the same bill every month regardless of interest rates. If you are on a budget, this is a great option.

Adjustable rate loans differ from fixed rate as they fluctuate with current interest rates. Don’t worry though, they usually have a cap so you won’t be paying twice as much as the month before. The cap is usually just a couple percent.

These are just a couple of popular types of home loans. If you plan on getting a commercial loan, you will have many more mortgage types available.

Some of these have very low payments for the first year until your business is established and they they increase so you can pay them off quickly.

The best bet is to research the different types of loan you are interested in and discuss them with your broker.

To figure out cost of living, there are several “calculators” and formulas on the internet that can help, some of which are more specific to cost of living per city.  Others will compare the city you are moving from to the city you are moving to, and tell you if you can afford the city you are moving to and how your lifestyle will change if the cost of living is higher.

In order to get an estimate of your personal cost of living, there are several steps to follow.  First, collect all receipts for your expenses over the last six months and sort them on a month-by-month basis.  This includes rent/mortgage, utilities, healthcare, dental, entertainment (movies, concerts, magazine subscriptions), restaurant receipts, child/pet care, car payments, new clothes and shoes, etc.  Next, average the six months, and then add 5%.  The 5% will cover any unforeseen hardships, travel, holidays, etc.  This is now your estimated monthly cost.  Now, subtract this number from the amount you receive in income in a one-month period.  Hopefully, you are left with a number that is at least $500.  If you have a deficit, you are living beyond your means and need to change your spending habits.  While this is just a rough estimate of your personal cost of living, using this equation can help you to better budget and plan for future long-term financial goals.

Credit cards are more than a luxury now days; in fact for some people they are essential. It is easy to spend too much, taking advantage of the credit cards, but tough to pay them off. With the increase in the usage of credit cards these days, resulting in heavy debts, credit card consolidation is the only hope. If you are burdened with a lot of debt on your credit cards, the best option would be to consolidate it all into one simple and easy payment. Upon consolidating, you gain more money monthly as well as reduce your debt. When you consolidate all your credit card debt you get an improved and better interest rate, rather than paying off the credit cards one by one. Though the interest rates may be lower and you would surely be making lower payments, but the credit cards consolidated by you, would be terminated leading to accounts getting closed. If maybe difficult for some people at first, however upon considering, you will realize that your credit rating has improved, and is for the best.

Besides saving money, credit card consolidation also relieves you off a lot of stress that you may feel every month, wondering as to how you will generate the money to pay off all the credit cards, along with all the other household and general expenses. With the help of credit card consolidation you can avert paying the credit card penalties, chargeable in the case of non- payment. Credit card consolidation helps you ward off the hassle of paying to a number of people or creditors, and instead make payments to an agency or a single lender.

Once you have taken the decision to consolidate your credit cards debt, it is advisable and important that you take the help of a professional. With a lot of financial institutions specializing in credit card consolidation, it is also important to research the companies under consideration. You need to find out and explore as to what are the hidden charges, fees, and ask questions till you are comfortable about the company. Once you have chosen the financial institutions, prepare a list all the credit cards owned by you along with the debt you owe each card. The financial institutions will then get in touch with these companies and make a good deal with them, like they may negotiate to lower the interest rates or the late fees, enabling you to clear your pending balance, wave off the fees for late payments, making it a long termed loan settlement and reducing the repayment amounts monthly.

Credit card consolidation services generally use all their resources and information to make a perfect pan of debt repayment for you. These services work with professional like doctors and attorneys, creditors, collection agencies and finance companies, convincing the creditors to lower the interest rates or waiver off the late fees and penalties, thus reducing your payments. After this, they normally combine all the payments into a single monthly payment, which you would finally pay to the credit card consolidation service. It helps rid of the possibility of missing out the payments, because of the number of bills you would other wise have to keep a track of.

A car is a fine convenience and these days, it is a convenience most of us can’t imagine living without. But with the fun and accessibility of owning a car comes responsibility. Oh yes, I’m talking about car insurance. Everyone has heard of car insurance, but is it really necessary, and how much coverage is really needed?

Many states have their own guidelines set up for what amount of care insurance coverage is needed. Several states require you to only care liability insurance, while other states may demand a higher coverage. Liability insurance dictates that if you are in an accident and are found at fault, you have insurance to cover the other person’s bills. While many younger drivers may not see or understand the benefit of liability insurance, it is also in place to protect the driver at fault. The insurance company does all of the legal legwork should injuries occur, and in most cases this results in legal ramifications of the accident being settled out of court.

There are benefits to carrying coverage other than the minimum liability insurance. For instance if you are in an accident and the other driver is at fault but without insurance, your insurance will likely help cover any medical or repair costs. There is always the option of suing the other driver, but if he/she can’t afford insurance there is a good chance they will be unable to pay your bills.

Consider also the possibility you are in a one-person accident. The road is slippery with ice or there is so much fog you can’t see and your car goes off the road, hitting a pole. Families have gone broke trying to pay for medical bills or car repairs in such accidents, but with car insurance you will have help. So, while making the monthly payments may not be ideal and may seem more of an inconvenience than not, there are many more upsides to having car insurance than going without.

Debt consolidation is an option for many people who are facing multiple debt problems today because it offers a better way of dealing with your debts rather then just going crazy over it, giving up, and filing bankruptcy. What debt consolidation companies do is they take in your application for a debt consolidation loan, which is one big loan you borrow for paying off all of your existing small debts, so that you have only one payment to worry about each month and save the hassle of managing multiple payments every month.

The process is very simple, you file an application with a debt consolidation company of your choice, and what Debt Consolidation Company does is ask lending institutions if they would lend you money.

Most of the debt consolidation companies also offer free debt consultation to their applicant for providing better level of satisfaction and services. What happens is that a counselor is assigned to each applicant, that counselor then contacts the applicant, and talks with him on the phone or in personal. The counselor finds out all the information the debt consolidation company needs for managing the applicant’s case and provide them with the best help they can. The counselor can also negotiate with the credit card companies to cut down on the interest rates of their client and stop the harassing phone calls and letters.

The counselor will also work with the applicant to determine the most effective payment plan for the applicant. They would also suggest a budget that the applicant and his/her family can reasonably follow over the certain amount of time period. This enables the applicants to give out the maximum amount of debt payments possible for them each month, and therefore their debt is paid off as quickly as possible.

Another favor the counselor can do for the applicant is obtain their credit reports and share these with the lending institutions that would give out the debt consolidation loan to the applicant. This ensures that only one trustable credit report is given out to the lenders, and saves a lot of credit enquiry on the applicant’s behalf. There wouldn’t be any problem of multiple credit reports raising red flags for the lenders, as in this case there would be only one credit report to look at.

After all this process is done, the counselor will finally send out your information to several lenders, the lenders will propose several offers to the applicant. The applicant will have to choose the offer that suits his/her needs the best, and will go with it. In this way debt consolidation companies can prove beneficial for you in many ways.