Accelerated debt reduction plans involve making extra principal payments, paying the highest interest rate debts first, or refinancing loans at lower interest rates. Formal debt reduction programs may charge high fees, so it is best to make extra payments yourself to save the most money. Refinancing can increase total interest costs if not done carefully to reduce payments and the loan term. Beware of prepayment penalties, high fees, and variable interest rates when refinancing loans.
Budget: What is it? [Organization of Money] - PowerPoint:Yaryalitsa
A budget is a financial document used to project future income and expenses to determine if a person or company can continue operating at projected levels. It allows you to understand where your money goes, make spending decisions, reach financial goals, and eliminate surprises. Creating an effective budget requires identifying monthly income and expenses, setting short- and long-term goals, and tracking your progress toward those goals. Budgeting, saving consistently, and paying yourself first are important tools for building financial security and reaching your financial objectives.
The document provides information about various home financing options available through Scotiabank, including definitions of key mortgage terms, the step-by-step mortgage process, pre-approval details, qualifying criteria, down payment options, payment frequencies, prepayment privileges, costs, mortgage insurance programs, and online tools.
This document discusses compound interest and provides an example of how to calculate savings growth over time using compound interest. It introduces the concepts of principal, interest rate, and compounding period. An example tracks a person's $10,000 savings invested at 6% annual interest compounded monthly over their first six months. The document suggests using Excel to model savings growth over longer periods and different scenarios to reach a savings goal of $1 million. Homework questions extend the example and ask about alternative investment options.
This document provides examples and explanations of simple and compound interest calculations, amortized loans, and guidelines for determining housing affordability. It begins by defining simple interest and showing examples of calculating interest and future value. It then covers compound interest, using formulas to calculate future values when interest is compounded annually, monthly, etc. Amortized loans are explained, with examples showing monthly payment amounts and interest splits. Housing affordability guidelines recommend limiting monthly housing costs to 25-38% of income and purchase price to 3 times annual income. The document concludes with an example calculating maximum affordable home price based on down payment, income, and estimated costs.
The document discusses creating budgets for personal, family, and business finances. It provides examples of estimating income and expenses to create a budget. Key terms defined include budget, crossfooting, receipts, and payments. The goals are to learn how to make and track budgets to control spending and ensure financial independence and stability.
The document discusses ways for individuals to save money, including paying yourself first by putting money from each paycheck into a savings account before paying bills or spending. It provides tips for savings goals and offers activities for readers to identify their goals and develop a savings plan. The document also covers compound interest, how small regular savings can grow significantly over time, and different savings and investment options like savings accounts, certificates of deposit, bonds, and stocks.
Budget: What is it? [Organization of Money] - PowerPoint:Yaryalitsa
A budget is a financial document used to project future income and expenses to determine if a person or company can continue operating at projected levels. It allows you to understand where your money goes, make spending decisions, reach financial goals, and eliminate surprises. Creating an effective budget requires identifying monthly income and expenses, setting short- and long-term goals, and tracking your progress toward those goals. Budgeting, saving consistently, and paying yourself first are important tools for building financial security and reaching your financial objectives.
The document provides information about various home financing options available through Scotiabank, including definitions of key mortgage terms, the step-by-step mortgage process, pre-approval details, qualifying criteria, down payment options, payment frequencies, prepayment privileges, costs, mortgage insurance programs, and online tools.
This document discusses compound interest and provides an example of how to calculate savings growth over time using compound interest. It introduces the concepts of principal, interest rate, and compounding period. An example tracks a person's $10,000 savings invested at 6% annual interest compounded monthly over their first six months. The document suggests using Excel to model savings growth over longer periods and different scenarios to reach a savings goal of $1 million. Homework questions extend the example and ask about alternative investment options.
This document provides examples and explanations of simple and compound interest calculations, amortized loans, and guidelines for determining housing affordability. It begins by defining simple interest and showing examples of calculating interest and future value. It then covers compound interest, using formulas to calculate future values when interest is compounded annually, monthly, etc. Amortized loans are explained, with examples showing monthly payment amounts and interest splits. Housing affordability guidelines recommend limiting monthly housing costs to 25-38% of income and purchase price to 3 times annual income. The document concludes with an example calculating maximum affordable home price based on down payment, income, and estimated costs.
The document discusses creating budgets for personal, family, and business finances. It provides examples of estimating income and expenses to create a budget. Key terms defined include budget, crossfooting, receipts, and payments. The goals are to learn how to make and track budgets to control spending and ensure financial independence and stability.
The document discusses ways for individuals to save money, including paying yourself first by putting money from each paycheck into a savings account before paying bills or spending. It provides tips for savings goals and offers activities for readers to identify their goals and develop a savings plan. The document also covers compound interest, how small regular savings can grow significantly over time, and different savings and investment options like savings accounts, certificates of deposit, bonds, and stocks.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
This document provides an overview of various mortgage features including:
- Interest rate options like variable rates that rise/fall with central bank policy and fixed rates that are calculated as expected future variable rates plus a buffer. It also discusses split rates that are part variable and part fixed.
- Repayment terms discussing maximum 30 year terms but shorter terms meaning higher compulsory repayments and less interest paid overall. Longer terms mean lower compulsory repayments but more interest paid.
- Other useful features like mortgage offset accounts that reduce interest costs and redraw facilities to access extra repayments.
- New product features such as zero deposit loans using family guarantees and reverse mortgages allowing seniors to borrow against their home equity.
It’s a Money Thing is a collection of effective and affordable financial education content designed to engage and teach young adults while setting your credit union apart. These presentations and other elements are all customizable with your credit union's logo. Check out Currency Marketing at currencymarketing.ca/money-thing for more information.
This document discusses the importance of creating and maintaining a budget. It notes that banks may loan more than individuals can afford, so budgeting is necessary to determine spending limits. Maintaining a budget provides financial stability and helps achieve goals. The document then provides tips for creating an effective budget, including tracking spending, prioritizing expenses based on values, and ensuring all household members participate in the budgeting process. Finally, it discusses how lenders evaluate debt-to-income ratios to determine loan eligibility.
Behaviorally Informed Anti-poverty Programs Part 1seprogram
This document discusses evidence from commitment savings products in the Philippines and New York City. It summarizes the SEED savings product in the Philippines which had a 28% take-up rate and increased savings by 300% for those who opened an account. It also describes the Super Saver CD product which allowed savers to build their balance over time by making regular deposits toward a savings goal with a competitive dividend rate. Both products aim to help people overcome cognitive biases to improve savings outcomes through commitment devices.
J ZAPPA REALTY CORP offers qualified individuals and corporations a way to utilize their available funds to achieve the highest returns on their principal through Private Mortgage Lending . This is a proven investment strategy that has been used by the most sophisticated of investors. By offering first lien positions on our properties, we can offer between a 4 - 10% return secured by a mortgage - a mortgage on properties with built-in equity as these deals were negotiated with lenders and purchased below market value.
The SBA sets maximum interest rates for SBA loans based on the loan term and size. Generally, larger loans with shorter repayment terms receive the lowest rates, while smaller loans with longer terms receive the highest rates. The actual interest rate is negotiated between the borrower and lender but cannot exceed SBA maximums. For 7a loans, rates are based on the prime rate plus a spread depending on loan size and term. Fees also apply depending on loan size and term. 504 loans are pegged to Treasury rates. Disaster loans have interest caps of 4-8% depending on available credit. Average SBA rates were 5.3% for variable and 5.8% for fixed loans from 2011-2012
This document provides information on various homeownership topics including the mortgage process, types of mortgages, credit management, foreclosure, and protecting your investment. It defines key mortgage terms, explains fixed and adjustable rate mortgages, describes the components of a credit score and how to manage credit, outlines the foreclosure process and alternatives, and reviews different types of homeowners insurance. The document aims to educate homeowners and potential buyers on essential financial literacy concepts related to purchasing and maintaining a home.
The news of hiked repo rate by RBI is in buzz as the same has been increased after almost 4 and half years. On the 6th day of June 2018, RBI has announced the revised repo rate of 6.25% which was previously 6%. This means that the interest rate has been increased by 0.25% or 25 basis points
Blog: https://financebuddha.com/blog/worried-about-the-rbis-hiked-repo-rate-here-is-how-you-can-beat-the-interest-rate-hike-burden
This case study involves Paul and Leslie Smithson selecting a mortgage for their new home. They have $10,000 for a down payment and closing costs, and can afford $1,000 per month for their mortgage payment and retirement savings. They have identified four mortgage options ranging from 30-year fixed rates to 15-year fixed rates paid monthly or bi-weekly. The case asks students to analyze each option by calculating the retirement account balance after 35 years to recommend the best mortgage. Students are to submit a formal report outlining their methodology, assumptions, analysis of one mortgage option in detail, summaries of the other options, a table of results, and a recommended mortgage with amortization schedule.
This document discusses immediate annuities, which provide a guaranteed monthly income for life in exchange for an initial deposit. It explains that the monthly payment amount is calculated based on the deposit amount and the purchaser's estimated life expectancy. While immediate annuities guarantee lifetime income, any remaining deposit is not returned upon death. The document also outlines some options for immediate annuity contracts, such as single life, joint life, period certain payouts, inflation adjustments, and remainder guarantees.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
Changing jobs too frequently in the months leading up to your mortgage application may raise red flags for lenders. Here are a few tips:
- Wait at least 6 months after changing jobs before applying. This shows stability.
- Have a strong explanation for any job changes prepared. Lenders want to see a career progression, not frequent lateral moves.
- Consider delaying a job change if a home purchase is imminent. Lenders look more favorably on applicants who have been with their current employer for at least 2 years.
- Provide extra documentation if needed, like a written job offer letter, to reassure lenders of your new position's stability.
The key is demonstrating steady, long-term employment.
Becoming a homeowner comes with a lot of responsibility, but also a lot of rewards. To help you decide if owning a home makes the most sense for you, here are some of the main reasons people choose homeownership over renting.
This document provides information about different types of consumer credit. It defines credit as an arrangement to receive goods or services now and pay for them later. It discusses how credit works, including borrowing money from a creditor and paying interest. It also covers the costs and benefits of using credit, factors to consider before financing a purchase, and the various forms consumer credit can take, such as credit cards, loans, and layaway plans. It emphasizes the importance of understanding interest rates, fees, repayment terms, and your ability to repay before taking on debt.
In this powerpoint, we explain the cost of a payday loan including the recent FCA price cap and how the daily interest and cost per £100 borrowed impacts the level of APR
The document discusses the importance of saving and investing for financial well-being and goals. It recommends saving for emergencies, retirement, a house down payment, interest, vacations and other big purchases, and irregular expenses. The document distinguishes between savings, which is putting money away for short-term needs, and investing, which is contributing to long-term financial vehicles like 401(k)s. It notes that the right time to start saving is now, and includes savings calculators and cartoons about the challenges of saving.
The document discusses a mortgage management account (MMA) software program developed by Accelerated Equity & Development to help homeowners pay off their mortgages early. The MMA program was tested successfully with 400 homeowners in Denver, reducing their mortgage payoff time by an average of 10-15 years. The MMA works by maximizing the performance of homeowners' money through optimizing various accounts and performing periodic funds transfers to pay down the principal on their mortgage.
The document discusses a software program called the Money Merge Account (MMA) that helps homeowners pay off their mortgages much faster by leveraging the interest-canceling effects of a home equity line of credit (HELOC). It provides examples of families eliminating 30-year mortgages in 10-12 years while maintaining their standard of living. The MMA software analyzes users' financial situations and recommends monthly funds transfers and prepayments that reduce interest costs substantially.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
This document provides an overview of various mortgage features including:
- Interest rate options like variable rates that rise/fall with central bank policy and fixed rates that are calculated as expected future variable rates plus a buffer. It also discusses split rates that are part variable and part fixed.
- Repayment terms discussing maximum 30 year terms but shorter terms meaning higher compulsory repayments and less interest paid overall. Longer terms mean lower compulsory repayments but more interest paid.
- Other useful features like mortgage offset accounts that reduce interest costs and redraw facilities to access extra repayments.
- New product features such as zero deposit loans using family guarantees and reverse mortgages allowing seniors to borrow against their home equity.
It’s a Money Thing is a collection of effective and affordable financial education content designed to engage and teach young adults while setting your credit union apart. These presentations and other elements are all customizable with your credit union's logo. Check out Currency Marketing at currencymarketing.ca/money-thing for more information.
This document discusses the importance of creating and maintaining a budget. It notes that banks may loan more than individuals can afford, so budgeting is necessary to determine spending limits. Maintaining a budget provides financial stability and helps achieve goals. The document then provides tips for creating an effective budget, including tracking spending, prioritizing expenses based on values, and ensuring all household members participate in the budgeting process. Finally, it discusses how lenders evaluate debt-to-income ratios to determine loan eligibility.
Behaviorally Informed Anti-poverty Programs Part 1seprogram
This document discusses evidence from commitment savings products in the Philippines and New York City. It summarizes the SEED savings product in the Philippines which had a 28% take-up rate and increased savings by 300% for those who opened an account. It also describes the Super Saver CD product which allowed savers to build their balance over time by making regular deposits toward a savings goal with a competitive dividend rate. Both products aim to help people overcome cognitive biases to improve savings outcomes through commitment devices.
J ZAPPA REALTY CORP offers qualified individuals and corporations a way to utilize their available funds to achieve the highest returns on their principal through Private Mortgage Lending . This is a proven investment strategy that has been used by the most sophisticated of investors. By offering first lien positions on our properties, we can offer between a 4 - 10% return secured by a mortgage - a mortgage on properties with built-in equity as these deals were negotiated with lenders and purchased below market value.
The SBA sets maximum interest rates for SBA loans based on the loan term and size. Generally, larger loans with shorter repayment terms receive the lowest rates, while smaller loans with longer terms receive the highest rates. The actual interest rate is negotiated between the borrower and lender but cannot exceed SBA maximums. For 7a loans, rates are based on the prime rate plus a spread depending on loan size and term. Fees also apply depending on loan size and term. 504 loans are pegged to Treasury rates. Disaster loans have interest caps of 4-8% depending on available credit. Average SBA rates were 5.3% for variable and 5.8% for fixed loans from 2011-2012
This document provides information on various homeownership topics including the mortgage process, types of mortgages, credit management, foreclosure, and protecting your investment. It defines key mortgage terms, explains fixed and adjustable rate mortgages, describes the components of a credit score and how to manage credit, outlines the foreclosure process and alternatives, and reviews different types of homeowners insurance. The document aims to educate homeowners and potential buyers on essential financial literacy concepts related to purchasing and maintaining a home.
The news of hiked repo rate by RBI is in buzz as the same has been increased after almost 4 and half years. On the 6th day of June 2018, RBI has announced the revised repo rate of 6.25% which was previously 6%. This means that the interest rate has been increased by 0.25% or 25 basis points
Blog: https://financebuddha.com/blog/worried-about-the-rbis-hiked-repo-rate-here-is-how-you-can-beat-the-interest-rate-hike-burden
This case study involves Paul and Leslie Smithson selecting a mortgage for their new home. They have $10,000 for a down payment and closing costs, and can afford $1,000 per month for their mortgage payment and retirement savings. They have identified four mortgage options ranging from 30-year fixed rates to 15-year fixed rates paid monthly or bi-weekly. The case asks students to analyze each option by calculating the retirement account balance after 35 years to recommend the best mortgage. Students are to submit a formal report outlining their methodology, assumptions, analysis of one mortgage option in detail, summaries of the other options, a table of results, and a recommended mortgage with amortization schedule.
This document discusses immediate annuities, which provide a guaranteed monthly income for life in exchange for an initial deposit. It explains that the monthly payment amount is calculated based on the deposit amount and the purchaser's estimated life expectancy. While immediate annuities guarantee lifetime income, any remaining deposit is not returned upon death. The document also outlines some options for immediate annuity contracts, such as single life, joint life, period certain payouts, inflation adjustments, and remainder guarantees.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
Changing jobs too frequently in the months leading up to your mortgage application may raise red flags for lenders. Here are a few tips:
- Wait at least 6 months after changing jobs before applying. This shows stability.
- Have a strong explanation for any job changes prepared. Lenders want to see a career progression, not frequent lateral moves.
- Consider delaying a job change if a home purchase is imminent. Lenders look more favorably on applicants who have been with their current employer for at least 2 years.
- Provide extra documentation if needed, like a written job offer letter, to reassure lenders of your new position's stability.
The key is demonstrating steady, long-term employment.
Becoming a homeowner comes with a lot of responsibility, but also a lot of rewards. To help you decide if owning a home makes the most sense for you, here are some of the main reasons people choose homeownership over renting.
This document provides information about different types of consumer credit. It defines credit as an arrangement to receive goods or services now and pay for them later. It discusses how credit works, including borrowing money from a creditor and paying interest. It also covers the costs and benefits of using credit, factors to consider before financing a purchase, and the various forms consumer credit can take, such as credit cards, loans, and layaway plans. It emphasizes the importance of understanding interest rates, fees, repayment terms, and your ability to repay before taking on debt.
In this powerpoint, we explain the cost of a payday loan including the recent FCA price cap and how the daily interest and cost per £100 borrowed impacts the level of APR
The document discusses the importance of saving and investing for financial well-being and goals. It recommends saving for emergencies, retirement, a house down payment, interest, vacations and other big purchases, and irregular expenses. The document distinguishes between savings, which is putting money away for short-term needs, and investing, which is contributing to long-term financial vehicles like 401(k)s. It notes that the right time to start saving is now, and includes savings calculators and cartoons about the challenges of saving.
The document discusses a mortgage management account (MMA) software program developed by Accelerated Equity & Development to help homeowners pay off their mortgages early. The MMA program was tested successfully with 400 homeowners in Denver, reducing their mortgage payoff time by an average of 10-15 years. The MMA works by maximizing the performance of homeowners' money through optimizing various accounts and performing periodic funds transfers to pay down the principal on their mortgage.
The document discusses a software program called the Money Merge Account (MMA) that helps homeowners pay off their mortgages much faster by leveraging the interest-canceling effects of a home equity line of credit (HELOC). It provides examples of families eliminating 30-year mortgages in 10-12 years while maintaining their standard of living. The MMA software analyzes users' financial situations and recommends monthly funds transfers and prepayments that reduce interest costs substantially.
This document outlines strategies for paying off a mortgage faster using principles of debt shrinkage. It discusses focusing income towards the mortgage by using salary credit direct to the home loan account. Using an offset account is recommended to reduce interest charges. Spending on credit cards within interest free periods and paying them off in full each month is suggested to utilize free bank money. Extra repayments above the minimum are shown to dramatically reduce total interest costs over the life of a loan through examples. Getting help from a debt shrink specialist is offered.
The document discusses and compares several options for dealing with debt, including bankruptcy, government debt consolidation, credit counseling, and a non-profit debt relief program called NuStart. It provides details on fees, interest rates, program length and impact to credit for each option. It then focuses on NuStart, outlining its guidelines including minimum debt amounts, payment terms, acceptable and non-acceptable account types. Examples of debt settlements NuStart has achieved for clients are presented. Commission structures for referrals to NuStart are also covered.
The document discusses a mortgage acceleration program called the Net Worth Account that aims to help homeowners pay off their mortgages faster and save on interest. It works by using a home equity line of credit or similar account to make extra principal payments on the mortgage. On average, homeowners who use the program can save over $45,000 in interest and pay off their 30-year mortgage in under 11 years. The program is administered through a web-based software service that optimizes payments to maximize interest savings over time.
Financial institutions and markets solutionsayesha shahid
This document summarizes a homework assignment on analyzing bonds and interest rates. It includes questions about calculating bond yield to maturity, the effect of interest rate changes on bond prices, duration, and other bond valuation concepts. Sample questions are provided along with step-by-step solutions and explanations. Relationships between bond maturity, discount rates, and prices are explored through examples.
The document provides information on retirement planning and debt optimization strategies. It discusses developing a realistic picture of retirement income and expenses, estimating sources like Social Security and pensions and factoring in healthcare costs. It suggests living for 6 months on projected retirement income to determine if it's realistic. It also outlines strategies to pay off debt, like paying more than minimums, focusing on highest interest rates first, or consolidating with a lower rate loan. While the strategies make sense theoretically, it can be difficult to implement them fully in practice due to competing financial needs.
This chapter discusses discounted cash flow valuation and concepts related to future and present value of multiple cash flows. It covers annuities, perpetuities, loan amortization, and effective annual rates. Examples are provided to illustrate computing future and present values of cash flows occurring at different times, as well as growing annuities and perpetuities. Key formulas and the distinctions between annual percentage rates, effective annual rates, and stated interest rates are also explained.
The document promotes Mortgage Managers LLC, which claims it can help homeowners slash their mortgage payments by as much as 80% using a legal method. It says the company's consultants can teach clients how to manage their mortgage to build equity faster and pay off their home sooner. It also argues that traditional mortgages result in homeowners paying over 100% of the original loan amount in interest due to compounding rates over many years.
Learn how to pay down your mortgage quickly and save thousands of dollars in interest along the way.
Its much easier than you think and we can help you setup the right structure for your personal situation
Call us today on 1800 REDLOANS
Interest rates play a key role in borrowing and earning returns on savings. Interest is a percentage charged for borrowing money or earned on savings, usually expressed as an annual rate. Higher interest rates mean higher borrowing costs but also higher potential returns. Compound interest allows earnings to accrue on prior interest, increasing total returns over time compared to simple interest which is based only on the principal. Factors like inflation, compounding frequency, investment horizon, and risk tolerance impact how fast money can grow.
Stanford CS 007-06 (2020): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
This document discusses discounted cash flow valuation and examples of calculating the future and present value of multiple cash flows. It provides examples of calculating the future and present value of annuities, as well as examples of different types of loans such as pure discount, interest-only, and amortized loans. Spreadsheet strategies for calculating present and future value are also demonstrated.
Stanford CS 007-06 (2019): Personal Finance for Engineers / DebtAdam Nash
The document provides information about different types of debt including student loans, mortgages, auto loans, and credit cards. It discusses the large amounts of debt held in each category in the US. For student loans, it notes the average debt for 2018 graduates and default rates. It also reviews strategies for paying off debt efficiently, including the debt snowball and optimal payment methods prioritizing the highest interest debt. The dangers of debt are discussed, emphasizing that bankruptcy occurs when debts cannot be paid and that credit card interest rates can exceed 20%.
Budgeting_ Wise Use of Credit_Understanding Your Credit Report and ScoreSpringboard
- The document provides information on creating and managing a budget, including tracking income and expenses, categorizing spending, and balancing income and expenses.
- It discusses the importance of paying yourself first by saving 10-15% of your income and paying more than just the minimum on debts to get out of debt faster.
- Tips are provided for reducing expenses in various categories and increasing income or decreasing expenses to balance the budget if needed.
Stanford CS 007-06: Personal Finance for Engineers / All About DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 31, 2017. This seminar covers compounding, debt, credit scores, amortization & strategies to pay off debt.
- Interest is a charge for borrowing money or compensation for lending money. It is calculated as a percentage of the principal amount over a period of time.
- There are two main methods for calculating interest: simple interest and compound interest. Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus previously accumulated interest.
- Compound interest results in a higher total interest amount than simple interest since interest is earned on interest over multiple periods. Tables of future values can also be used to quickly calculate compound interest and amounts over time for a given principal, interest rate, and time period.
Combined Illegal, Unregulated and Unreported (IUU) Vessel List.Christina Parmionova
The best available, up-to-date information on all fishing and related vessels that appear on the illegal, unregulated, and unreported (IUU) fishing vessel lists published by Regional Fisheries Management Organisations (RFMOs) and related organisations. The aim of the site is to improve the effectiveness of the original IUU lists as a tool for a wide variety of stakeholders to better understand and combat illegal fishing and broader fisheries crime.
To date, the following regional organisations maintain or share lists of vessels that have been found to carry out or support IUU fishing within their own or adjacent convention areas and/or species of competence:
Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR)
Commission for the Conservation of Southern Bluefin Tuna (CCSBT)
General Fisheries Commission for the Mediterranean (GFCM)
Inter-American Tropical Tuna Commission (IATTC)
International Commission for the Conservation of Atlantic Tunas (ICCAT)
Indian Ocean Tuna Commission (IOTC)
Northwest Atlantic Fisheries Organisation (NAFO)
North East Atlantic Fisheries Commission (NEAFC)
North Pacific Fisheries Commission (NPFC)
South East Atlantic Fisheries Organisation (SEAFO)
South Pacific Regional Fisheries Management Organisation (SPRFMO)
Southern Indian Ocean Fisheries Agreement (SIOFA)
Western and Central Pacific Fisheries Commission (WCPFC)
The Combined IUU Fishing Vessel List merges all these sources into one list that provides a single reference point to identify whether a vessel is currently IUU listed. Vessels that have been IUU listed in the past and subsequently delisted (for example because of a change in ownership, or because the vessel is no longer in service) are also retained on the site, so that the site contains a full historic record of IUU listed fishing vessels.
Unlike the IUU lists published on individual RFMO websites, which may update vessel details infrequently or not at all, the Combined IUU Fishing Vessel List is kept up to date with the best available information regarding changes to vessel identity, flag state, ownership, location, and operations.
Food safety, prepare for the unexpected - So what can be done in order to be ready to address food safety, food Consumers, food producers and manufacturers, food transporters, food businesses, food retailers can ...
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
UN WOD 2024 will take us on a journey of discovery through the ocean's vastness, tapping into the wisdom and expertise of global policy-makers, scientists, managers, thought leaders, and artists to awaken new depths of understanding, compassion, collaboration and commitment for the ocean and all it sustains. The program will expand our perspectives and appreciation for our blue planet, build new foundations for our relationship to the ocean, and ignite a wave of action toward necessary change.
United Nations World Oceans Day 2024; June 8th " Awaken new dephts".Christina Parmionova
The program will expand our perspectives and appreciation for our blue planet, build new foundations for our relationship to the ocean, and ignite a wave of action toward necessary change.
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
Practical guide for the celebration of World Environment Day on june 5th.
Accelerated Debts Reduction Plans
1. Accelerated Debt Reduction Plans
Advantages, disadvantages; do-it-yourself, and structured plans.
To continue the slide show, mouse click or press
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2. Accelerated Debt Reduction Plans
Sound debt reduction or debt elimination plans
involve one or more of the following three
components:
1.Extra principal payments.
• Making larger-than-required payments; and/or
• Bi-weekly payment arrangements
2.Paying the highest rate debt first.
3.Reduction of interest rates.
(Each of these points will be discussed in detail in the following slides).
3. Extra Principal payments:
Nearly all loans made to Utah consumers allow extra principal payments to be applied to the loan
balance, and thus reduce the total amount of interest paid. Before you make extra principal payments,
be sure to follow the method prescribed by your lender. Usually that simply means showing the
amount of extra principal being paid (the amount in excess of the required payment) in the designated
place on the payment coupon or remittance slip. The following is an example of the potential savings.
In this example, if extra principal payments of only $10 are made each month,
10,000 12% 57 mo. 210,000 12% 57 mo. 2332 13,1672 13,167
Loan Rate Term Pmt Total Interest
10,000 12% 60 mo. 222 13,346 3,346
If $50 extra principal is paid each month, the borrower pays
10,000 12% 47 mo. 2772 12,582
If $100 extra principal is paid each month, the borrower pays
10,000 12% 38 mo. 3322 12,069 2,069 $1,277
$1,277 less interest, and pays the
loan off almost 2 years early.
Savings
3,167 $179
the borrower pays $179 less
interest, and pays off the loan
about 3 months early.
2,582 $764
$764 less interest, and pays the
loan off more than a year early
4. Long-Term Loans
The savings resulting from extra principal payments is even more dramatic for long-term loans such as
mortgages. Consider the following example:
136,283 8% 10136,283 8% 101010 29 yr.29 yr.
If $10 extra principal is paid each month
Bal Rate Pmt Term Interest Savings
136,283 8% 1000 30 yr. 223,717
136,283 8% 105050 25 yr.
If $50 extra principal is paid each month
136,283 7.757.75% 1283 1515 yr. 98,077 $125,640
If the borrower can afford $283 extra each month, a 15 year loan can be obtained. Usually 15 year loans can
be obtained at a lower interest rate, thus adding to the savings. In this example, if the loan had been obtained
at 7.75% rather than 8%, $125,640 less interest would have been paid versus the 30 year loan (assuming each
loan was paid according to the schedule shown above).
212,773 $10,944
$10,944 less interest is paid, and the loan
is paid off about one year early
180,817 $42,900
$42,900 less interest is paid, and the loan
is paid off about 5 years early
5. Bi-Weekly (b/w) Payment Programs:
A convenient way to make extra principal
payments, if:
Your paydays are Bi-weeklyYour paydays are Bi-weekly
If you don’t get paid every other week, don’t bother with bi-weekly! (See the following slides).
Your lender accepts extra principalYour lender accepts extra principal (most do without penalty).
Reputable money handlerReputable money handler (some have misused funds).
Low or no feesLow or no fees (some lenders charge no fees, some servicers charge high fees).
Warning: many charge periodic service fees and a set-up fee!
For some people, a small fee may be worth it for the convenience, and discipline, but watch out!
Some servicers claim that the fees come out of the savings. Yes, if you stay with the program,
you will save more than the fee they charge, but if you do it yourself, you can avoid the fees and thus save
even more.
$ 5 b/w service fee $ 150 setup fee
$25 b/w service fee $ 4,0004,000 setup fee
6. If a person makes 26.09 half payments bi-
weekly in an average year:
The Advantage of
Bi-Weekly Payments:
Since there are:
365 1/41/4 days in an average year, and
÷÷ 14 days in a biweekly period, there are
== 26.09 bi-weekly periods in an average
year.
that is the equivalent of 13.045 full payments in an average year!
Most months have 2 bi-weekly paydays, but each year, there will be 2 months with 3 paydays.
7. About
every 11 years:
*Technical detail: Since there are 26.08929 bi-weekly periods in an average
year (365.25 ÷ 14 = 26.08929), about every 11 years, people who get paid bi-
weekly, have 3 months with 3 paydays. Since most years have 26 bi-weekly
pay periods, we may subtract 26 from 26.08929 to get .08929 as the
incomplete portion of a bi-weekly period in an average year. To determine
how many years before an extra full bi-weekly period will take place, we may
divide 1 (bw pmt) by .08929 = 11.1995 years.
a person paying 1/2 of the regular monthly payment bi-
weekly, will make the equivalent of
13 1/2 monthly payments
(by making 27 half payments).
This is because every ~11* years
3 months have 3 paydays.
(3 extra paydays yield 1 ½ extra full payments).
8. Pay 1.09* x 733.77 = 799.81
Loan Rate Pmt Term Total Paid
Extra Principal Bi-Weekly or Monthly
If you don’t get paid bi-weekly, or if you just want to administer your own monthly debt reduction plan and
get the same results, you may pay 1.09 times your required monthly payment. If you do, you will obtain
almost the same result as paying 1/2 of your monthly payment biweekly.
Bi-weekly: 26.09half pmts each yr.
733.77 ÷ 2 = 366.8926.09 times per year
22.65 yrs22.65 yrs
the new term
22.522.5 yrsyrs
new term
48,20948,209
interest saved
(not paid)
216,832216,832
the new total
215,948215,948
new total paid
47,32547,325
less interest
paid
Save
66.04 add .09 of a payment each month.
100,000 8% 733.77 mo. 30 yr. 264,157
Consider the advantage of paying this loan bi-weekly:
(by paying 17,000 early, you avoid paying $47,325 of interest)
Extra Principal
*1.09 = 1/12 of 13.05 pmts
(which is the av. number of full payments
made each year in a bi-weekly plan).
9. Mortgage $ 87,724 734 pmt 8% 20 yrs. remaining
Car loan 13,056 415 pmt 9% 3 yrs.
Other debts 8,000 203 pmt 18% 5 yrs.
Total debt 108,780 1,352
Suppose you were to consolidate these debts into one new mortgage loan; the balance
would immediately go up due to closing costs, but the required monthly payment would
drop. Assuming you could get a better rate, say 7.5% and closing costs of $3,000:
Total
Interest
95,00095,000
If you refinance, but keep paying: 1,352 payoff in 9.75 yrs.
Interest & fees
50,00050,000
If you just keep paying
the old debts as agreed:
New loan 111,780 782 new pmt 7.5% new rate 30 yrs. new term
you “save” (delay paying) 493 each month, but do you really save?
The total of interest and fees paid (assuming you pay according to the new terms):
There are many who claim that you can
Re-finance and “save”.
If your goal is to reduce your monthly payment, it may work just fine. But if your goal is to get out of debt, or
reduce your debt more quickly, if you aren’t careful, refinancing will cause the opposite of what you intend.
Sometimes it works great, especially if you don’t run up other debts again. But often, it just means you are
delaying paying, increasing your debt, and greatly increasing the total amount you pay.
Let’s consider the advantages and disadvantages of refinancing the following debts:
Interest & feesInterest & fees
173,000173,000
50,756 if you keep paying 1352 (no
refi) focusing on highest rate debt first.
10. After 1 year
New New New
Bal. Pmt. Term
77,554 651 21.9
8,072 250 3.1
4,126 150 2.6
6,253 120 8.5
0 0 0
794 90 .8
Getting out of debt quicker, by focusing
first on highest rate debts
Let’s suppose someone had
the following debts. They
could meet the payments, but
with no money to spare:
Existing Balance Payment Rate Remaining
Obligations (p & i*) Term (yrs.)
1st Mort 78,721 651 8.5% 22.9 yrs.
Auto Loan 10,239 250 9.0% 4.1 yrs.
Trailer 5,451 150 9.8% 3.6 yrs.
Credit Card 6,539 120 18.0% 9.5 yrs.
Doctor 400 40 21.0% .9 yrs.
Dentist 1,200 50 19.0% 2.5 yrs.
Totals 102,550 1331 (*p&i stands for principal & interest)
After 1 yr., start
applying the amount
formerly going to the
doctor ($40) to the
next highest rate
debt (the dentist).
After 1.8 years
New New New
Bal. Pmt. Term
76,547 651 21.1
6,194 250 2.3
2,970 150 1.8
5,984 210 3.1
0 0 0
0 0 0
After .8 yr. more,
apply the amount
formerly going to the
doctor ($40) and to
the dentist ($50) to the
next highest rate debt
(the credit card).
11. After 3.7 years
New New New
Bal. Pmt. Term
73,863 651 19.2
1,153 250 .4
0 0 0
2,745 360 .7
0 0 0
0 0 0
Getting out of debt quicker, by focusing
first on highest rate debts
Let’s suppose someone had
the following debts. They
could meet the payments, but
with no money to spare:
Existing Balance Payment Rate Remaining
Obligations (p & i) Term
1st Mort 78,721 651 8.5% 22.9 yrs.
Auto Loan 10,239 250 9.0% 4.1 yrs.
Trailer 5,451 150 9.8% 3.6 yrs.
Credit Card 6,539 120 18.0% 9.5 yrs.
Doctor 400 40 21.0% .9 yrs.
Dentist 1,200 50 19.0% 2.5 yrs.
Totals 102,550 1331
After 1.9 more yrs,
apply the amounts
formerly going to the
doctor & dentist to
the credit card:
After 4.4 years
New New New
Bal. Pmt. Term
72,760 1,261 6.2
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
Out of debt in 10.2Out of debt in 10.2 yrs.
After .7 yr. more,
apply the amounts
formerly going to the
doctor, the dentist, the
credit card, trailer &
auto loan to the
mortgage loan.
12. Formal Debt Reduction Programs:
As shown in the earlier slides, you may do
your own debt reduction plan by simply
adding extra principal to your required
payment. In most cases, the more extra you
pay, the greater your savings, and the
sooner you are out of debt.
If you wish to use a formal plan (maybe
because you lack the willpower to do your
own, or want the convenience), be cautious:
13. Formal Debt Reduction Programs:
Remember: Some bi-weekly servicers
charge very large set-up fees. Although
you will likely save more than the fee - if
you stay with the program, such fees still
represent money out of your pocket.
Watch out for no-refund clauses (if for
some reason you want to get out of the
program early).
14. Formal Debt Reduction Programs:
Also, make sure companies you consider
doing business with are reputable money
handlers. Many of the programs draft
money from your checking account and
then make your payment for you. Some
have been found to misuse the money.
Apparently no regulatory agency oversees
such companies.
15. Dangers Lurking!
Each time you refinance, you
add to your debt (nearly always).
Be careful that you don’t defeat your intent.
There are monsters out there who are more
than willing to take as much money as you
are willing to give them.
A lady called the Department of Financial Institutions recently who wanted to
get a better rate on her mortgage loan. She found out that she’d gotten a very
bad deal the last time she refinanced.
16. She had refinanced her home 2 years prior “because interest rates
had gone down.” She thought she was getting the loan terms
shown in the left column below. When she went to refinance
again, 2 years later “because rates had gone down again,” she
found out she actually had the loan in the middle column below. I
asked why she signed such a loan, she said she was in a hurry and
didn’t read the documents. A very costly mistake! According to
my calculations she lost about $24,000 by not paying attention.
Typical
Re-financed $147,000
“Closing Costs” $3,000
New Loan $150,000
Rate 8%
Diff
$14,000
$3,000
NWFin
Prepay Penalty $0 $7,000 7,000
Total Loss $24,000
10%
$147,000
$17,000
$164,000
17. Variable vs. Fixed RateVariable rate loans can be great if rates go down, but if rates go up, the payments go up, and the total cost
of the loan goes up. In a fixed-rate loan, the rate stays the same and the payment stays the same. If rates
go down, a person can refinance (if s/he thinks the cost of the refinance is worth the difference in rate). If
rates go up in the marketplace, his/her loan is not affected.
18. Home Loans: Beware
1. Prepayment penalties?
Most loans do not have them. Make sure yours doesn’t!
Or if it does, make sure you get some benefit in exchange.
2. Compare Rates
3. Compare Fees
4. Fixed vs. Variable?
19. Avoid Closing Trapsespecially if delayed
Understand
what you are
signing and
why.
Take your time
Don’t just (sign, sign, sign)
Expect delays, and keep all your other
obligations current.
Could be the most important 3 hours of
your financial life.
20. Some say: Put your equity to work
Companies keep trying to encourage people
to mortgage their homes and invest the
money.
These speculative arrangements have cost
many people their homes. Beware!
Even though they promise
all sorts of guarantees, too often the
investments fail andthe borrowers
lose their homes.
Don’t risk your home for speculative
investments!
21. Equity Investments: Suppose a person with plenty of equity
takes out a new mortgage and lets the company “invest it”
0
20000
40000
60000
80000
100000
120000
140000
160000 $150,000 value of home$150,000 value of home
Existing mortgageExisting mortgage
New mortgageNew mortgage InvestInvest
EquityEquity
(proceeds(proceeds
of loan)of loan)
Interest to make paymentsInterest to make payments
Remember:Remember:
EquityEquity HigherHigher
raterate
2. If you can’t afford to lose it, don’t invest it!2. If you can’t afford to lose it, don’t invest it!
1. The greater the rate, the higher the risk!1. The greater the rate, the higher the risk!
LowLow
raterate
22. Equity Investments
0
20000
40000
60000
80000
100000
120000
140000
160000 $150,000 value of home$150,000 value of home
Old mortgageOld mortgage
New mortgageNew mortgage
Remember:Remember:
1. The greater the rate, the higher the risk!1. The greater the rate, the higher the risk!
2. If you can’t afford to lose it, don’t invest it!2. If you can’t afford to lose it, don’t invest it!
3. Don’t borrow it if you don’t want to pay it back!3. Don’t borrow it if you don’t want to pay it back!
Far too manyFar too many
programs, have lostprograms, have lost
the investment, leavingthe investment, leaving
the victim to pay backthe victim to pay back
both the old and theboth the old and the
new mortgage.new mortgage.
23. If you are divorced or getting
divorced...
Have you closed out
all of your old joint
accounts?
If not, you may be
liable even if the
divorce court directed
your x-spouse to pay!
24. Don’t sign it -
unless you agree to it!
How can you agree to it if you
don’t understand it?
How can you understand it, if
you don’t read it?
If you still don’t understand it,
get some help before signing!!!
25. For more information,
You may contact the Utah Department of
Financial Institutions.
801 538-8830
www.dfi.utah.gov
Editor's Notes
Most home buyers are astute enough to compare interest rates, but some don’t compare closing costs. This slide shows real numbers charged by a mortgage company. Early in 2002, the borrower called the Department of Financial institutions. She said that 2 years prior, she had consolidated her debt because rates were down. She thought she was getting the loan in the left column. Two years later, she heard that rates were down even more and called her lender asking if they’d re-write her loan at a better rate. They told her they would, at 9%. She asked why 9% when she already had an 8% loan. They told her she didn’t have an 8% loan, but a 10% loan. She pulled out her documents and realized that she did have a 10% loan, and that they had charged her an outrageous $17,000 in closing costs (typical would have been somewhere close to $3,000).
I asked her why she signed the unfavorable contract. She said she and her husband were in a big hurry, and the loan officer brought the papers to each of them while they were at work, and neither of them bothered to check to see if what they were signing was consistent with what the understood.
They went to another mortgage company to refinance at a better rate. When her loan to NWFin was paid off, she learned that she had also signed a note with prepayment penalty. That cost them almost $7,000. I figure their inattention to detail cost them $24,000 (14,000 too much for closing costs, $3,000 in extra interest paid on a $164,000 loan balance at 10% rather than 150,000 balance at 8%, and the prepayment penalty of $7,000).
In my estimation, they got ripped off legally. If there was anything illegal about the deal, it was that the loan officer told them one thing and had them sigh something different. How would they prove it to a judge?