Bankruptcy Vs Debt Management – Which Makes More Financial Sense For You?

Debt management program is basically an agreement between a lender and a borrower which solve the terms of a pending debt. This commonly refers to an individual finance method of people addressing high consumer debt over a long period of time. The debt management program involves the direct management of one’s debt by the borrower. This method is not recommended for beginners because it requires a lot of knowledge and hard work to accomplish this.

In debt management, the borrower negotiates with the lender in order to have lower interest rates, eliminate fees, penalties and accumulated late charges in a systematic way. The program starts with free consultations where the counselor explains all the pros and cons of the method. The counselor may also invite a relative or an expert in the field in order to advise the lender on how to go about debt management. If there are no recommendations from the counselor or the relative, then the borrower will be able to negotiate with the lender directly. A good lender will be willing to negotiate with the borrower because this type of lender can make more money through the monthly interest rates.

Free consultations often require the assistance of a third party such as a credit counseling agency in order to negotiate with the creditors. When a person gets a good broker, they can gain a lot of leverage because most credit counseling agencies have large teams of professionals who can negotiate effectively with the creditors. After the negotiations are done, the borrower will be able to pay back the lenders based on the agreed upon interest rate. The counselors usually encourage the person to save as much money as possible so that they will be able to pay back comfortably after the debt management program is completed. This method works well if the amount of money saved can cover the interest rate or the principal balance of the debt.

There are many options available in dealing with high interest debts. A debt management plan allows a person to consolidate all of their unsecured debts into one single payment. Some of these plans allow for a low interest rate while others have a lower interest rate but also require a monthly payment. If a person is enrolled in a debt management plan, they will be required to make a single monthly payment to the service that will be distributed between the creditors. It is important to note that enrolling in a debt management plan will not prevent the accumulation of late fees and other charges.

Another option available for managing debts is to enroll in a debt management company. These companies have a team of professionals who can negotiate with the creditors on behalf of the client. Once the negotiations start, the debt management company will contact all creditors and present a repayment plan to the creditors. If the plan is approved, the debt management company will distribute the money to the creditors according to the arrangement made.

When someone has a debt management plan, they do not have to fear filing for bankruptcy. Once they have enrolled in a plan, they will begin to pay off their debts. Once the individual has completed paying off all of their unsecured debts, they will no longer be obligated to repay any of the debt management plan money to the lender.

What are ETFs? Exchange-traded fund

What Is an ETF?

An exchange-traded fund (ETF) portfolio includes several securities whose assets are listed on exchanges. The main meaning of ETF is buying and selling assets on exchanges just like other equities. The fund is used to track high value commodities or securities. Once you know the definition of ETF, you will be able to determine the best strategy for investing your own funds.

Investors who are just starting to invest or have invested in large projects for a long time know that reverse exchange-traded funds are exchange-traded notes called ETNs. These are not real ETFs but bonds that are traded at the same level as stocks. The issuer (bank or other investor) acts as a support. Before you start investing, you should find out if you can use ETN for your own benefit.

In America, the majority of ETFs are publicly traded. This means that they are regulated by the investment company legislation. The only exception is changes in terms and conditions. A lot of investors can participate in such funds.

The clients who don’t learn enough about stock markets and other aspects of profitable investments can now use the Orca app service. Thanks to it, it will be easy to understand how start buying US etfs in the UK and get their decent market share.

To start conducting financial transactions on the stock exchange, you don’t need large deposits, even the minimum amount allowed for the purchase of assets is enough. Investing is similar to purchasing other valuable securities. You will be able to choose the optimal investment strategy and wait for the financial benefits.

Different types of ETFs

Everyone who wants to receive profits after purchasing a share can use one of the types of etf funds. With their help, it is easy to increase your profits, raise prices, or speculate. Learn about etfs and it will be a great way to invest your finances. You can also provide a partial refund of the money lost due to high risks during the investing process.

It’s important to know how ETFs differ from regular stocks. Purchasing an ETF means purchasing several assets from the same industry. You won’t become the sole owner of a share, that is, you won’t be able to take part in shareholders’ meetings and influence the company life. Buying assets may involve a small commission. To find out how much you will have to pay for a certain type of asset, it is enough to study its description. Let’s look at the basic types of ETFs and simple definitions.

Bond ETFs

They include assets of the state or private companies called municipal assets. They are used on stock exchanges, so every investor can find out their cost. With such best etf investments, it is easy to study all kinds of indexes without transferring large amounts into equities. With bond ETFs, you can get a certain percentage of dividends paid every month in different units.

Industry ETFs

Conduct an analysis of the selected industry. After that, it will be clear what stocks will cost the most after a certain time. Most often they are used for speculation or hedging.

Commodity ETFs

This type of ETF is required to start investing in goods, or different metals (gold, silver, etc.), oil and other resources related to certain industries. Typically, the purchase of such securities means you own contracts for certain products. You don’t need to store real bars of precious metals — you will have a set of papers for them.

Currency ETFs

Investors can access various currencies outside their own country. You will be promptly notified about the exchange course fluctuations and thus will be able to make profitable investments.

Reverse ETFs

When the price of a stock is falling, the only way to generate income is to sell it as quickly as possible. It is easy to make money with this type of ETF. The only drawback is higher fees.

Examples of ETFs

With ETFs, you can track not only a specific business area but a wider range of stocks currently being traded. The most famous examples of etfs presented in the financial market are:

  • SPDR S&P 500 (SPY) — this type of market ETFs was created many years ago and still works today. It provides analysis of the S&P 500 index;
  • IShares Russell 2000 (IWM) tracks the Russell 2000 small cap index;
  • Invesco QQQ (QQQ) — Nasdaq 100 index (includes assets of companies of the technological sector);
  • Physically backed ETFs — with this fund, you can find out the value of precious metals stocks. Storage is conducted in gold and silver bars.

Don’t forget about the  investing app for a detailed analysis of the investing principles for various assets.

Exchange traded fund FAQ

To learn more about what is a exchange traded fund and how to transfer funds to a specific set of assets, check the list of frequently asked questions. They will help novice investors understand the principles of investing.

How do I invest in ETFs?

To start investing, you need to create an etf account and choose suitable ETFs. Next, it remains to place a bid, check the order and wait for the best conditions to replenish your balance.

Who manages ETFs?

A specialist who analyzes stock market assets, studies trends and economics is involved into the etf management. Contacting your manager will help you find out the most favourable conditions for increasing your profits and ways of successful asset management.

Where to buy ETFs funds?

You can buy ETFs at a low cost, as well as more expensive assets on the stock market. The disadvantage of this method is the need to pay a commission to your broker for financial transactions.

How to buy ETF stock?

A brokerage account and the right strategy to increase your profits will help you purchase ETFs on favourable terms.

What is an ETF portfolio?

An ETF portfolio is a set of assets that can be purchased for future profits. 

Money Saving Challenges That You Can Achieve!

The most common way of saving money for retirement is by saving in a money saving account. Money saving accounts are designed to help you save and invest for retirement. They can be opened up at any bank, and usually you can open up one without much of a hassle. There are other ways you can go about saving for your golden years, but if you want the easiest and most convenient way of saving, then a money saving account is probably going to be your best bet.

Another thing that many people don’t consider when they are saving money for retirement is that they should make sure that they have a savings account. You see, one of the most important aspects of saving for retirement is having a savings account. If you don’t have one, then you won’t be able to save very much money. In fact, you may find yourself relying on credit cards to help you out. You don’t want to do that, so make sure that you are saving money and putting it away.

One of the biggest money saving challenges you may face is getting your finances organized. It’s easy to get side tracked, especially if you are a single person. If you have a family you will also face money saving challenges. You may realize that you have more bills than you thought you had. This is a great time to talk to your spouse and ask them to help you with your financial planning.

After you talk to your spouse, you will need to take some action to start saving for your golden years. The first thing you need to do is take advantage of one of the many money saving challenges that are out there today. The next thing you need to do is to start investing in your retirement. If you do those two things, you are going to be well on your way to saving the most money possible for your golden years.

If you want to learn more about saving for your golden years, you can visit the site Retirement Rainbow. They have a website dedicated to showing you how to save money and live the Golden Years. They offer a money challenge that they call the 52-week challenge, which allows you to set up a saving goal and achieve it for just twice the amount of money you would normally spend during the course of the year.

In addition to setting up your personal savings goal, the 52-week money challenge also provides you with a list of other things you can do. For example, you can buy a new pair of running shoes or take a sailing trip. There are also several gift cards that you can purchase and give to others. Those gift cards are worth even more money because once you redeem them at the store, you will receive discounts on many things including groceries and other purchases.

Why the Citi’s bitcoin report shouldn’t be considered as ‘embarrassingly bad’ 

It’s not every day, that you can observe the Financial Times openly (and without any hesitation) bash a globally important institution or bank, just like they recently did with Citi. In March 2021 the bank issued its bitcoin report, under the title ‘At the Tipping Point’. Financial Times then described it as ‘embarrassingly bad’, and we’ll try to determine whether that’s true or not.

FT’s story is a rather snappy piece that has been written with one purpose only – to dismantle Citi’s arguments, that were presented in the report. But as FT recommends its readers to skip the report, maybe we should consider if it was even targeted at these people (or at least the average ones).

Just by looking briefly at the report, we can see that it includes a wide variety of experts and specialists covering the crypto subject. But there are two gentlemen, who seem to be standing out. Both are professionals and CEOs of some leading brokers, asset, and infrastructure management companies.

Of course, this does not undermine other experts included in the report. It only means that these two stories may have influenced heavily the way the whole report was planned and prepared.

The first expert – Zac Prince

The first expert is Zac Prince, who is the CEO and Founder of BlockFi. The last two years have been great for his company, and for the DeFi (decentralized finance) sector in general. And just a few weeks after Citi’s report, we’ve seen a story that Greenscale Investments are joining the race for the launch of bitcoin ETF. Do you know, who are the Grayscale Bitcoin Trust largest holders? Yes, it’s BlockFi with a reported $35 billion.

On the same day, BlockFi hit the news once again, as they had received $350 million during the fourth funding round. One of the investors was Bain Capital Ventures, and as we can imagine, BlockFi valuations have started growing, and have eventually hit new heights. We’ve seen that already with unicorns like Coinbase and Robinhood, even before their IPOs were considered (and as the history shows, Coinbase’s IPO has been a slight let down).

The second expert – Matteo Leibowitz

Leibowitz works as Uniswap’s Strategy Lead. He’s one of the people responsible for the staggering success of the company. Back in September 2020, Uniswap was luring investors such as Andreesen Horowitz, when their ecosystem was valued at less than $10 billion in total. Today we’re speaking of Uniswap as one of the leaders of DeFi, and their value has passed $50 billion.

For people unfamiliar with what Uniswap does: it’s a company running a cryptocurrency exchange. It works on smart contracts and lets its users trade tokens directly from their wallets. One of their investors is Coinbase, a company worth around $70 billion, or even more. Back in August 2020 Uniswap already had a higher volume of daily transactions than Coinbase. We can only imagine the company’s worth with today’s numbers.

The ‘inventor’ of Uniswap, Hayden Adams, surprisingly is not the company’s CEO. It wasn’t even his plan to become an expert in smart contracts. For him, Ethereum was just ethical and exciting money.

Leibowitz’s role in the company is not fully clear either. But maybe that is because the company is a cutting-edge endeavor, so the positions they have may not have been structured yet. But nevertheless, seeing that they successfully manage to develop their company, we could trust that they know what they’re doing.

Uniswap is available on Coinbase, and it is worth something around $25 (with the recent peak of $30). It actually follows the same trajectory as bitcoin, and it just does well while the whole DeFi market is growing. Also, it is no longer the matter of ‘if’ the banks will adopt trading of cryptocurrencies. It’s the question of ‘when’. With that in mind, maybe it’s worth remembering Uniswap’s name?

To read a full, original piece by Joel Oluwatobi, where he analyses the markets, and gives his verdict on Citi’s report, use the following link to the Disruption Banking page: https://disruptionbanking.com/2021/04/07/hey-citi-your-bitcoin-report-is-not-embarrassingly-bad/