Mums Finance

Relatively easy…if you consider the problems being experienced currently by the large French bank Societe Generale!

Jerome Kerviel, the latest Rogue Trader after Nick Leeson set the stage in 1995, has generated losses for the French bank that make Nick Leeson’s losses for Barings look like pocket money. We are not talking in millions here, but billions.  Bank officials confirmed that the size of the trader’s positions had reached “several tens of billions of euros,” a staggering sum for a bank whose market capitalization is 35.9 billion Euro (£26.57 billion). Some reports have estimated Kerviel’s bets amounted to as high as £60billion.

There is no talk of errors of judgement here, this guy knew what he was doing and had been fraudulently trading with the bank’s money for over twelve months, you have to ask the question: How did he manage to get away with this for so long?

Of course you have to remember that these traders work with currencies everyday dealing into the millions and billions; it must provide a huge adrenalin kick when the stakes are running high; just look at how crazy the markets have been in the past week or so. There must also be the over-confidence and the urge to push just that bit too far and take far too many risks.

I have to admit, while I feel for those people who may have lost a fortune due to this guy, there are times when I am glad I’m not millionaire!

Popularity: 27% [?]

It is time to look at what to do and where to go when you have decided to take the step and organise a small loan for yourself or for your business. You will be looking for a small loan right? Well lets define ‘small’ for a start with regards to personal and business loans.  The definition has shifted over the years being influenced by such factors as inflation and business needs. Whereas you may be thinking that a small loan is an amount under $10 000 the actual amount you can be eligible to borrow, and the loan still be consider small, may be an amount anywhere up to $50 000. 

 Don’t be under the assumption that the less you borrow the better it will be for yourself, with the right loan at the best interest rate combined with a manageable term of say, five to ten years, you would actually be better off borrowing more and maintaining a convenient and reliable line of credit. Some foresight is important in this regard when you have a small business.

Now, lets look at where to source lines of credit; the choice of providers these days is mindboggling to be sure but it is vital to approach this matter with the attitude that your credit provider will also be a type of business partner to you so choose a company that is well established in sourcing the lending industry, such as America One Unsecured.

America One are the leading brokers in a very competitive industry; they specialise in organising small unsecured loans for either business or personal use. Very often, especially when you are just starting off in your business, it is difficult to raise collateral until you are off the ground but you don’t need collateral with America One – they will broker a loan for the individual without it therefore making the process much easier for you. And that also makes for a faster processing time.

They provide a selection of borrowing options for you so just take a look and decide what is best for your needs. Just remember though; it is better to go for just that bit extra than leave yourself short. Take advantage of their low interest rates and bear this in mind.

Popularity: 25% [?]

This is always the best time of year to grab bargains at the shops; the post Xmas sales! Now while your cash will go further at the moment it is important to remember that you don’t want to over stretch yourself; here’s a few ideas so that you can shop til you drop and not feel so guilty afterwards (like yeah, right) plus save some cash along the way…

* Detox your wardrobe; out with the old so you can fit in the new. Chuck out all those pieces that are too small, out of fashion or just never see the light of day. We all have them. Give them to your fave charity shop or you can even make a small profit by selling them to some of those shops into vintage clothes.

* Toss out old bottles of fragrance and any old makeup – not good for you and besides you will need space on the bathroom shelf.

* Shop online more often – Amazon ship for free

* How much do you spend a week at work nipping out for a latte? Add it up and you’ll get a shock: buy a couple of thermos flasks and before you go to work fill one with coffee/hot chocolate and the other with a delicious soup from home, the soup is a real treat in the cold weather and takes the edge off the hunger pangs…I’ll bet you start a trend in the office!

* Bite the bullet and open up your credit card statements. If you’re overcommitted shop around for a credit card provider who offers 0% interest on balance transfers. Shift all your balances to one card and clear the rest. Stick to paying off one card and only using another when you can clear the monthly balance. Write it in letters of fire across your mind for 2008!

It is always a good resolution for the new year to start overpaying your credit card bills; set up a standing order so that the amount is set and you don’t have to worry about it. But make the effort to do this and you will be surprised how quickly that balance comes down. It’s good for your credit rating as well.

Popularity: 26% [?]