Privacy Policy

Privacy Policy for http://billsontimeiscrucial.blogspot.com/

If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at ngixdua@gmail.com.

At http://billsontimeiscrucial.blogspot.com/, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by http://billsontimeiscrucial.blogspot.com/ and how it is used.

Log Files
Like many other Web sites, http://billsontimeiscrucial.blogspot.com/ makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.

Cookies and Web Beacons
http://billsontimeiscrucial.blogspot.com/ does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.

DoubleClick DART Cookie
.:: Google, as a third party vendor, uses cookies to serve ads on http://billsontimeiscrucial.blogspot.com/.
.:: Google's use of the DART cookie enables it to serve ads to users based on their visit to http://billsontimeiscrucial.blogspot.com/ and other sites on the Internet.
.:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html

Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include ....
Google Adsense


These third-party ad servers or ad networks use technology to the advertisements and links that appear on http://billsontimeiscrucial.blogspot.com/ send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.

http://billsontimeiscrucial.blogspot.com/ has no access to or control over these cookies that are used by third-party advertisers.

You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. http://billsontimeiscrucial.blogspot.com/'s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.

If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.

---

So far, we have created ... 150,177 Privacy Policies.

Breaking Down and Improving

As you may know, based on some recent articles, I have started my home buying process. I have looked at many factors like the economy, monies available for down payment and job security when weighing the decision to buy a place. However, I have found that the one financial factor that seems to be the most important in being able to afford the home I want is my credit score. This determines what kind of interest rate I can get on my mortgage, how much down payment and subsequently my maximum loan amount. In fact as I researched what is in a credit score, I have come to realize that it is probably one of the most important numbers in your financial life. Simply put and all other things being equal, the better your FICO credit score, the cheaper your cost of borrowing. So here is a breakdown of your credit score, how to get it (cheaply) and ways you can improve it:
Your FICO credit score breakdown
The term credit score usually refers to your FICO score, a number based on a formula developed by the Fair Isaac Corporation, which looks at a summary of all your credit accounts and payment history. Your FICO (credit) score determines your access to and cost of credit. Most lenders use it as the main basis for loan or credit approvals, so the higher the better and the lower the more problems. FICO score ranges from 300-850, and Fair Isaac calculates them for each of the three big credit-reporting agencies: Equifax, Experian and TransUnion.

Here’s how your score is determined:

• 35%is determined by your payment history. Do you regularly pay your bills or fines on time to any creditor that submits your information to the credit bureau? Overdue medical bills, parking tickets and other fines may appear here.
• 30% based on the amounts you owe each of your creditors, and how that compares with the total credit available to you or the total loan amount you took out (debt to equity ratio). If you’re maxing out your credit cards, your score may suffer.
  
• 15% is based on the length of your credit history, both how long you’ve had each account and how long it’s been since you had any activity on those accounts. The fewer and older the accounts, the better (assuming you’ve made timely payments).
• 10% is based on how many accounts you’ve recently opened compared with the total number of your accounts, as well as the number of recent inquiries on your report made by lenders to whom you’ve applied for credit. Your score can drop if it looks as if you’re seeking several new sources of credit — a sign that you may be in financial trouble. (If a lender initiates an inquiry about your credit report without your knowledge, though, it should not affect your score.) Shopping around for an auto loan or mortgage shouldn’t hurt, if you keep your search to six weeks or less. But every inquiry you trigger when you apply for a credit card can affect your score. So be selective.
• The final 10% is determined by the types of credit used. Having installment debt — like a mortgage, in which you pay a fixed amount each month — demonstrates that you can manage a large loan. But how you handle revolving debt, like credit cards, tends to carry more weight since it’s seen as more predictive of future behavior. (You can pay off the balance each month or just the minimum, for example, charge to the limit of your cards or rarely use them)

What’s not in your FICO credit score: Contrary to popular belief, your age, employment history and where you live are not used in determining your credit score. This is not to say this information won’t be considered by lenders when evaluating you for a loan, its just that it will not factor into your FICO score calculation.

How do I get my FICO score cheaply and is it any good?

Now that you know what your credit score is made up of, you want to see how your’s stacks up. If you have a social security number and have conducted any type of financial transaction, chances are you already have a FICO score. One important point to note is that your Credit Report (available free from annualcreditreport.com – the only authorized online site under federal law) is not going to give you your FICO credit score. It is a good place to start and identify errors, because it shows all your credit history, but it will not give you your actual score.

For that, you’ll generally have to pay. You can go through the three major agencies Equifax, Experian or TransUnion directly, which have 3 for 1 packages or sometimes their own scoring methodology, which can be different than the FICO scores lenders generally use when they evaluate your loan applications (so read the fine print). I have found that myFICO.com (Fair Isaac corporation’s own website) offers the best and most reasonably priced options on its site. The $15.95 FICO Standard package (as of March 2009) lets you get your credit scores from your choice of Equifax or TransUnion. With this comes a full explanation of the credit score and how lenders view you. Best of all, it also includes actions you can take to get your FICO score into the higher ranges. You can all also get myFICO’s Score Watch which monitors important changes to your score and alerts you (weekly) when there are any changes. Another nice feature: It also notifies you when you qualify for a better interest rate. It costs $8.95 p/month, you can try it for free via this promotion.

How does your credit score rate? For the best rates on a loan or credit card, you want a score that’s above 750. The median US credit score is 720 (half the population has more than this, while the other half is lower). The next section looks at how to achieve a good score, but here how the various FICO score ranges compare:

Top Shelf Score: A score above 780 means you have excellent credit with an excellent history of paying back and managing debt. Even in this economy, banks will happily lend to folks with 780+ credit scores, meaning they will get the best rates and easiest access to credit.

Middle of the Pack: FICO score from 700 to 780 is very good and above average (the FICO score is not a linear range). You may not get the best rates, but if you have a stable job and little debt then you should get a very competitive rate. However focus on getting to the 780 level, using the simple tips that follow
Work to do: FICO credit score between 600 to 700. You won’t be denied loans on this score but the terms aren’t going to be too generous. You need to work hard to get your score into the higher ranges or face the prospect of years of rising debt payments, while your higher credit neighbors live the cheaper debt life.

In the Dog House: Credit score below 600. Once upon time banks used to love sub-600 borrowers because they could charge them the highest rates and reap the biggest profits. This group were called the “sub-prime” borrowers. Then we had a crisis with the same name, and the rest is history. Now banks and brokers won’t give you the time of day. You really need to focus on repairing your credit (it can be done!) or learn to live without it. Cash is your best friend and stay away from the loan sharks.

You are likely to see improvement in your scores within 30 days if you pay down significant chunks of your credit card debt. But otherwise, credit repair takes time, and how much time depends on the many details of your credit reports. If you have serious black marks, such as bankruptcies or foreclosures, you can see significant improvement in your scores as time passes but you may have to wait until those negatives drop off your credit reports before you can join the 700-Plus Club.
Improving or Repairing your FICO Credit Score

The good news is that no matter what your score you can always do things to improve it. Some may seem counter-intuitive, but they are all looked upon favorably by the rating agencies:

• Check the credit reports that you get with your FICO score for errors, omissions and potential identity theft. Omissions matter because you want to show that you have paid off loans. If you notice information that’s inaccurate, you can submit a request for removal by mail or online with the major rating agencies. Be sure to specify what information you think is inaccurate and why, and include any documents that support your argument. Ask in writing that the information be corrected or removed from your report. By law, the bureaus must investigate your complaint, usually within 30 days, and give you a response in writing (or via e-mail, if your request was made online) and a free copy of your report, if the information is changed as a result. Your score should reflect that change shortly after.
  
• Paying your bills on time is crucial. Since 35% of your score is based on your payment history, delinquent payments and collections can have a severe impact on your score. If you can’t pay off your credit card debt every month, pay it down to less than half the maximum available balance.
• A quick and effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score. So don’t cancel the credit card once you’ve paid it off because the score considers longevity and available (revolving) credit.
• A common mistake for many frugal and debt averse individuals is never using a credit card. Advisers recommend that they use it even just once a year and pay it off immediately.
• A score can be hurt if multiple lenders request a person’s credit report because they’re shopping for a mortgage or auto loan. To avoid this, get “good faith” estimates from banks without giving your Social Security number.
  
• Re-establish your credit history if you have had problems. Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.

Monitoring your Credit score

With the rise in identity theft over the last few years, there has been much debate about how often you should monitor your credit score. Companies like Lifelock have been advertising heavily about protecting your identity and hence your credit. Whether you need to monitor your credit that often is debatable. For most, a close look at the free annual reports from each bureau is probably enough. But if you plan to apply for a loan or credit card, check your score and report at least a couple of months beforehand. Not only will you be aware of how creditworthy you are, you’ll also have time to remove any errors you spot and make sure your score reflects the changes before you fill out any applications.

So there you have it – a pretty detailed look at how your credit score is calculated, measured and can be improved. Feel free to leave a comment if you have any questions or stories on how you improved your credit score.

Lessons from investing in a losing stock

Want to tell you a story about my trading history with Brocade Communications (BRCD). This was one the first stocks I bought after moving to the US. It had just announced good results and was trading around $10.50, There were some good articles about it and I saw some positive news stories about it. The fundamentals looked good, solid ratios, analyst buy ratings, no debt and it was in a duopolistic market – the only other major competitor was Cisco.
Yet today the stocks stands at $7. (It was down to $6 a few weeks ago and has had a run up before the earnings announcement today). So why did the stock drop so much, even though I did my homework? Well here are some reasons I think why :
- They had just been through SEC investigation for options backdating. Even though they paid a fine and had new management in place – this should have been a big red flag to me. It only takes one mistake for a company to lose it’s reputation but it takes a lot of time for a company to get it back. Institutions probably didn’t want to buy it until new management has a better track record.
- Their biggest competitor is Cisco- CSCO (up 5% in the last 7 months). I should have realized that Cisco is a much bigger, better established company. It has better margins and was more diversified! It was as they sat best of breed in the sector and I possibly should have bought this stock instead. I did do my research and that time felt BRCD had better relative growth prospects.
- Seasonal factors! Tech is normally weak during the summer. Brocade is a tech stock! I should have factored this in and waited to buy the stock
- Before and After the positive earnings announcement in Jan (just before I bought the stock), the share price ran up about 30% – so I bought at the peak. I should have waited and had patience.
Anyway, I am still holding the stock as I do believe in the long term it is a good company in a growth sectors (Networking and storage management). I am not selling anytime soon and hopefully their future earnings will improve. If the earnings and forecast are poor – I will probably sell and take the loss! However I will not forget the factors I should consider for my next investment,

Paying Off Student Debt Faster

Student loans are one of the most common forms of debt and can easily turn into a life-long hassle if you aren’t careful. If you are a recent graduate, the best thing that you can do for the state of your finances is to make paying off your student debt a priority. Here are a few ways to get your student loans taken care of as early as possible in your career.
1. Pay more than required to reduce principal
When your first student loan payments are due, your lenders suggest a minimum payment, usually based on a ten year repayment schedule. If you are able to afford it, it’s best to pay more than the suggested amount, which can help reduce interest rates. Be sure, however, to notify your lender in writing your intent to do so, as paying extra each month may only roll over to next month’s payment, in effect not reducing your principal.
2. Know exactly how much you owe, when payments are due, and how to get in touch with your lenders if you have questions.
Your school’s financial aid office is the best source of information about student loans. If you have any questions about when and how to make payments, or if you need to update your contact information, be sure to contact the office and clear things up. The worst thing you can do is go MIA when it comes time to repay student loans and default, which can ruin your credit score. Staying in touch is key.
3. Look into loan forgiveness programs.
Many recent graduates don’t have a specific career path mapped out once they leave school. If you’d like to take a few years off to help your community or others in need, consider applying to several programs offered by the federal government that can effectively forgive your student loan debt. Examples of such programs include AmeriCorps, the Peace Corps, and the National Guard. Teaching in specific low-income communities can also serve to forgive student debt. For information, check out this FinAid article on student loan forgiveness.
4. Loan consolidation is a good option for some.
While paying off your loans quickly is best for your finances in the long-term, if you’re interested in reducing your monthly payment and making it easier to keep track of your payments, consolidating your loans may be helpful. By consolidating, you can extend the repayment schedule of your loans, and you can also put everything into one easy payment. There are a few downsides to consolidation, which you can read more about here.
5.  If you want to pay off some loans ahead of schedule, work on the most expensive ones first.
If you have multiple student loans and would like to get rid of one or more as quickly as possible, pay off the ones with the highest interest rates. It’s also good to prioritize private loans, as their interest rates are more often than not higher than federal loans, and they don’t have the repayment flexibility that government loans tend to have either.
While student debt is something that more and more of us have to tackle considering the rising cost of higher education, if you’re smart about it, you can get rid of the debt in no time. Just be aware, stay on top of things, and don’t panic. A debt-free future is closer than you think.
This was a guest post contributed by Kate Willson

A New 2011 Economic Stimulus Package With Obama-Bush Tax Cuts and Unemployment Benefit Extensions

[Update - No New Taxes with Tax Extensions Approved] President Obama has now signed into law a bill that covers a temporary extension of all the bush-era tax cuts. The new bill also contains extensions to some of the 2008 stimulus tax breaks, and even has some new tax cuts. With this legislation he has essentially created a new 2011 Economic Stimulus package, estimated at around $858 billion. Here’s how various key components of the “2011 economic stimulus package” legislation will affect you:
No increase in federal income taxes as current rates stay the same. The table below provides the potential 2011 tax rates and brackets, which are slated to be the same as 2010 levels. Tax bracket ranges may move slightly when the official IRS tables are published, but with low inflation the changes should be minimal. A rise in tax rates would have cut the after-tax pay by $3,000 for the average tax payer, so this provision is worth a lot given current economic conditions. However, the tax rates extension is only for 2 years, and unless the economy really tanks, don’t look for these to be extended again.

Lower social security payroll taxes = More money in your paycheck. The employee payroll tax, which funds Social Security and Medicare, would also be cut by 2% during 2011 to help spur business hiring. Unfortunately this social security benefit will be of no help to seniors who will not receive another $250 supplementary social security payment (nixed by Congress, due to low inflation) in 2010. Seniors should benefit from the unchanged tax rates, but are probably the group getting the least benefits from all the deficit adding stimulus spending.
Extension of unemployment benefits for 13 months. This will allow the long term unemployed to keep their unemployment benefits longer. Over 2 million unemployed would have lost their benefits this month if the insurance was not extended. However the maximum is still 99 weeks and the growing number of ultra-long term employed is a worrying trend for everyone.
Small business owners get capital equipment tax breaks. Under the compromise deal,  business’ will get to take a full deduction for equipment purchases that currently must be deducted over time (accelerated depreciation original proposed in small business jobs bill). The proposal would accelerate $200 billion in tax savings for companies in the first year and benefit 1.5 million companies and several million individuals who run businesses.
Capital gains and dividend taxes unchanged providing a boost to equities -Long-term capital gains (on assets held at least a year) and qualified dividends will continue to be taxed at a maximum of 15%. This benefit will mean that investors can keep more of their gains and should see the stock market enjoy more gains in 2011.
Estate limit increase and lower taxes – Existing thresholds will be raised to $5 million for an individual or $10 million for a couple for both estate and gift-tax levies, with a top tax rate of 35%.  These new provisions are only for 2 years and will expire at the end of 2012, meaning a lot of revised estate planning for families. Taxpayers who have already used some of their lifetime exclusion under the old rules ($1 million) will be eligible for the higher exemption limit. The annual gift limits will  remain at $13,000, or $26,000 for a couple, a year for each beneficiary; this is in addition to the lifetime limits.
The extension of the tax cuts also reinstates many smaller, but still valuable, tax credit provisions that were also scheduled to expire at the end of 2010:

• The American Opportunity Credit, which allows college students and their parents to save up to $2500 on their taxes.
• Teachers Tax Credit for teachers who purchase classroom supplies using their own money. They can continue to write off eligible costs up to $250.
• Child Tax Credit  of $1000 per child under 17 years-old will continue to be available to parents or legal guardians on the child.
• The already expanded  Earned Income Credit, which reduces the marriage penalty and creates a “third tier” of the EITC for families with three or more children, has been extended for another 2 years.

I will continue to update this post as the legislation passes through Congress and encourage you to subscribe (free) to get the latest news.

2011 Employee 2% Payroll Tax Cut Holiday For Social Security and Medicare. Making Work Pay Credit Not Extended

As part of bush-era tax cuts extension legislation (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010), a number of new tax breaks were made available. One was a temporary one year cut in employee payroll taxes, which funds Social Security and Medicare, of 2% during 2011. The current rate is 6.2%, which will be 4.2% of wages paid next year, and equates to a $1000 saving for the average American employee.  Employers and payroll companies will typically handle the withholding changes, so workers shouldn’t need to take any additional action, such as filling out a new W-4 withholding form. Employers have until January 31, 2011 to implement the new payroll tax rates, and make any necessary adjustments or corrections by March 31, 2011.
The payroll tax break, which in essence is another economic stimulus payment, has been provided to help workers and spur business hiring.  The employer tax rate for social security remains unchanged at 6.2%. The 2011 social security wage base limit is $106,800. In 2011, the Medicare tax rate is 1.45% each for employers and employees, also unchanged from 2010. There is no wage base limit for Medicare tax. The reduced Social Security withholding as a result of the payroll tax cut will have no effect on the employee’s future Social Security benefits.
Further, the Making Work Pay tax credit expires on December 31, 2010. As a result:
-  The income tax withholding tables for 2011 will no longer be adjusted for the Making Work Pay credit.
- There is no longer an optional additional withholding adjustment for pensions.
- The procedure for withholding on wages of nonresident aliens has been modified
The IRS has also released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011. The IRS will also publish the official 2011 Federal tax rates and brackets in a few days which incorporates the above changes and encourage you to subscribe (free) to get the latest news.

Child Tax Credit Extension For 2011-2012

As part of bush-era tax cuts extension legislation (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010), a number of popular tax breaks were extended. This includes the valuable tax credit for dependent children that many parents have taken advantage of over the last few years. Thanks to past legislation the child tax credit was doubled to its current level of $1,000, plus making the eligibility and qualification thresholds lower so that more families can take advantage of it. The latest legislation keeps all past rules intact and funds the credit for another two years.
Child Tax Credit
Under the recently approved legislation, the Child Tax Credit (CTC) of $,1000 per child under 17 years-old will continue to be available in 2011 and 2012 to tax paying parents or legal guardians on the child. This credit is the largest tax provision benefiting families with children. Full CTC eligibility is subject to income limits of $110,000 for married couples and $75,000 for single parents. After these income levels the credit is reduced by 5% of adjusted gross income. Because it is a credit, and not a tax deduction, taxpayers receive it is a refund if no taxes are owed. The IRS has published some other additional information around claiming and qualifying for  the credit:
Additional Qualification – A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.

1. Age Test – To qualify, a child must have been under age 17 – age 16 or younger – at the end of the year in which the credit is being claimed for
2. Relationship Test – To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child.
3. Support Test – In order to claim a child for this credit, the child must not have provided more than half of their own support.
4. Dependent Test – You must claim the child as a dependent on your federal tax return.
5. Citizenship Test – To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
6. Residence Test – The child must have lived with you for more than half of the year you are the claiming the credit for.
7. Limitations – The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.
8. Additional Child tax Credit – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

The Child tax credit can be claimed in addition to the existing credits for Child Dependent Care expenses.