Thursday, November 11, 2010

How you avoid Credit card Bill.

Credit card used to pay each and every bill of everyday.You can pay your utility bill to flight ticket charge and your shopping bill.Credit limit decided on the basis of your credit rating and the credit rating judge by the financial institution according to your income your financial condition.If you have good credit rating than you can also able to apply for the unsecured credit card.Unsecured credit card is convenient for the people ,those have huge expenses ,and it is not possible to carry cash each and every time or it can be beneficial when you need to travel out of your home town for your job and business on this time unsecured credit card help you a lot.There is also demerits of unsecured card is that some time you cann’t control your expenses which will create financial burden on you.

Interest on some credit card high and for some credit card interest rate is zero. So when you go for credit card from your bank or any financial institution ,it is better that you can checkout all the detail available in the market, which help you to save your money.

Secure credit card is one where you need to deposit security amount and as per your security amount your credit limit is decided. Secure credit card help you to build your credit rating .Each and every credit card company report to the credit bureau for your payment status which help to build your credit rating .

Credit card debt is create a financial burden on you and if you use more than your credit limit ,you need to pay penalty fees on that, not only that if you forget to pay your bill on time than you need to pay interest on the due amount, which is also create a unnecessary burden on you.

You can easily avoid the unnecessary charges on credit card debt by preparing budget and avoiding the unnecessary expenses, use cash to every day shopping.

Friday, October 29, 2010

East Asia develop as tourism hub

Everywhere there was panic of financial crisis in Eastern Asia South Korea, Japan to Philippines were the major tourism country affected by the global financial crisis. One of the biggest tourism markets is Philippines; many tourists from South Korea come to that place. But this year rate declined by 9.4 %.. China contribution to the to the Philippines tourism industry is nearly about 15 %.

Global crisis is the main reason for the decline of the tourist inflow which leads to the several damped consumer sentiments leading to the reduction in the tourism. Japan and South Korea are the top markets that represent from were maximum number of tourist arrive to Philippines. Hotel, travel and other industry comprises are the part of Hospitality industry are the most expensive industry of compare to other industry in Asia.

It is very tough phase for Filipino tourism industry as foreign tourist arrives dropped admits unfavorable business condition. As the hotel prices are relatively higher in the Philippines than other Asian countries, the government should encourage construction of new hotels and other tourism-related establishments. Construction of new hotels will spur price competition and increase the availability of rooms, which, in turn, will push the foreign tourist arrivals in the country.”
South East Asia which include India, Pakistan, Nepal and Bhutan. India is now become the largest foreign tourist destination but Indian tourism industry is also affected by terrorism, undeveloped infrastructure facility. Nepal and Bhutan is also not getting the importance among the foreign tourist.

India has big advantage of large number of efficient doctor, surgeon and world class medical facility, and most important is that cost of medical expenses is comes one third in compare to US and any European countries. So, different patients from all part of the world come to India .Indian Govt. also develop different infrastructure facility to become one of the important medical tourism destinations in the world.
China and Thailand are two big competitors in the same field. China has good number of physician but there is not world class facility available second Chinese are not able to speak English as fluently like Indian .Thailand has all the option to attract the new medical tourist.

Saturday, October 9, 2010

How big is the sukuki bond market and what are their advantage

The market for sukuk is estimated at $85bn at year2007. The market is divided into two broad categories; on the one hand, global sukuk(which are listed on global markets and usually denominated in international currency, mainly the US dollar), and on the other hand , local or domestic sukuk(which are issued by Muslim issuers on their respective domestic markets, and are denominated in local currencies).
Listed sukuk represent roughly one-third of total sukuk outstanding, or $30 bn. We, at S&P, do rate sukuk for an outstanding, amount at mid-year 2007 in excess of $12 bn, or 30% of listed sukuk.
For issuers of sukuk , one advantage is to have access to alternative sources of funding, while diversifying funding sources. Given the wider appetite for these assets-based (and sometimes assets-backed) securities, issuers a can broaden their investors more inclined to comply with religious rules. Finally, sukuk have upside value embedded in them , reflecting the very begin economic environments from which sukuk are issued, mainly the Gulf region and south East Asia, both growing very fast and where the outlook is positive.
Capitalization in the sukuk market has been substantially increasing over the last seven years. The sukuk market has increasingly grown exponentially since 2000 with an average growth of approximately 805 per annum. It grew at a slower rate in the beginning, but suddenly accelerated in 2003. Initially, the market was limited to the domain of sovereign issues; however, realizing its vast potential , a number of corporation in the Middle East as well as Asia have started to take opportunity.In 2000, there were only three three corporate sukuk worth almost $5.7bn; and in 2006, the figure substantially grew to exceed $27 bn.
The global sukuk market continued its rapid growth in the first half of 2007, edging up 75.1% YoY while the international sukuk market expanded by 83..3%YoY. The first semester of 2007 also saw sovereign sukuk issues rise to total of $4.4 bn as compared the corporate sukuk had risen to a total of $20 bn. In term of currency, as at the end of june 2007, Malaysia ringgit-denominated sukuk represented 70% or $17.2 bn of the total sukuk being issued globally.

In line with the development of Shari’ah banking, the Islamic capital market in Indonesia is also on the rise. The growth of Shari’ah bond issues. Till now, 17 Indonesian corporations have issued Shari’ah bonds woth almost IDR2,209.4bn ($245.5 mn), with two types of Shari’ah bond so far, namely Ijarah, accounting for 63% (IDR 1,394.4 bn) ($155 mn) and Mudharabah for 37% (IDR 815 bn) ($90.5 mn).

Thursday, September 30, 2010

Interest free debt consolidation

In the finance market there is lots of changes comes up after globalization. As every country think to reduce there import duty to actualize the open economy process. In the financial market too banks and the govt. of every country want to reduce there interest rate near to zero. In some countries bank are already reduce their interest to zero. As per Islamic finance and sariah rule interest is strictly prohibited .That means the whole world financial market try to adopt the same think tank as Islamic finance, which they apply from last hundred of years.
In Islamic finance debt, mortgage, investment and debt consolidation all applicable if they follow the sariah rules and regulation. In Islamic law interest is strictly prohibited, but you can help other with debt, or be able to take debt if its interest free. Interest free Debt Consolidation Company, lender of debt or mortgage issuer can charge a specific fix amount as installment and they fix the installment with their rent.Interest free debt consolidation company can fix the monthly or quaterly payment for there coustomer and there commission charges also include on the installment amount this will help to the customer to get out of the unnecessary burden with change in interest rate in the market.Interest free debt and mortgage also has the same benefits.
Few years ago all the investor from Middle east invest their income from petroleum export in US bonds , and they leave there interest they just get the profit of increased value of the US bonds.
These will beneficial for US bonds issuer too. When the US dollar market value reduces after gulf war, the Middle east investor change their mood of investment and they shift their investment from US dollar bond to other courtiers bonds. On the mean time innovation of the sukuk is give a lot of help to the middle east investor .UK is the first country want to develop their market as a sukuk hub to get the middle east investors money and on the mean time rise of Euro also helps a lot. Japan , Singapore and China are some of the big name from Asia run on the same path. Malasia become the largest sukuk bond market in the word after the innovation of sukuk but there is great competition from Singapore, Japan and China.

Saturday, September 25, 2010

Bigger prospect of sukuk

Despite the stupendous rise in terms of volume, the Islamic bond market is just like the tip of the iceberg in comparison to the overall global bond market. The development which has taken place so far has mainly been driven by economic and political factors. The so-called a war on terrorism in the aftermath of the September 11, 2001 attacks on the World Trade Centre has helped immensely to instill a sense of Islamic identity across the Muslim world, prompting many more to seek ways of expressing their religious convictions. Adding to this, further are the strengthening oil prices which have fueled an unprecedented economic boom in the Middle East.
To capitalize on the new-found interest among investors across the globe,issures are placing greater thrust now on innovation in an effort to cater to different classes of both buyers as well as investors. This has seen players-structuring and development of new products and services which are Shariah-compliant. For instance, experimental ideas are emerging in product and infrastructure finance, apart from sukuk. The most visible sign of this innovation is seen in retail products, such as Islamic mortgages. And the next focus for innovation in retail products will be the Islamic credit cards, or the creation of quasi overdraft facilities (based on a concept known as tawarruq). Experimental ideas are now also emerging in product and infrastructure finance, aside from sukuk. Private equity is showing intense interest too, as is the so-called diminishing musharaka (sharing) structure, which produces an effect akin to the amortization of a loan. However the field which is arguably attracting the most brainpower is derivatives and structures finance. But, concepts such as derivatives and hedge funds, for example, are considered particularly controversial, given the Qurans ban on gharar (speculation). Nevertheless, these criticisms are certainly not inhibiting the development of new ideas at present. On the contrary, most observers believe that product proliferation will further intensify this year.

Thursday, September 16, 2010

Islamic Debt bond Market

Debt and interest on debt is strictly restricted in the Islamic countries. Free debt help is allowable without taking any interest ,or these can be treat as help to someone without intention to get interest from the lending person. As per Quran taking interest or paying interest on debt or loan is against the sariah law. So the bond investment is not popular among Muslim. Most of the petroleum exporting countries are investing there surplus amount in the US free debt help bonds and they not taken interest on the investing amount, these is beneficial for the US and also helpful for these country to protect their religious value. Sukuk which is plural form of sakk is come into existence to fulfill Muslim believe which is also a same thing as free debt help bond where there is no interest is calculated on invested amount of bond. There is no interest is calculated on the bond value.
Sukuk bond market demand continue rising after its arrival. The main reason behind the increase in the sukuk demand is devaluation of market value of the dollar and recession in US economy.
Most of the petroleum exporting country are investing there surplus in US bond market but after 2000 when the US dollar market value continue depreciated and the US economy faces lots of problem and there is continue rising of the US fiscal debt than there is a big problem arises for the OPEC investor and they think that they loss there reserve market value.
Euro would give another option to the investor, but euro unable to become the close competitor of the US dollar.
Islamic finance today is led predominantly by sukuk(plural of sak) bonds; sukuk is an Arabic word which means “certificates.” In its simplest form, sukuk are analogous to assets-backed securities which provide an investor ownership right of an investor ownership right of an assets. The most important criteria for the issuance of sukuk are the existence of the underlying assets on the balance sheet of the issuing entity, which distinguishes sukuk from conventional bonds. Unlike the conventional bond, which is a contract debt obligation entitling the holder to receive interest as well as principals on specified dates, a sukuk holder enjoys proportionate share in the revenues generated by the sukuk assets as in the proceeds of the realization of the underlying assets. Another distinguishing feature of a sukuk is that in cases where certificates represent a debt to the holder, such certificates will not be trade-able in the secondary market and instead is held till the maturity period or sold at par. Moreover, adherence to strict Shari’ah rule, which prohibits speculation, prevents Islamic investors from using conventional hedging tools such as interest rate swaps, forwards or options to offset fluctuations in interest rate and currencies. In last couple of years, the Islamic bond market has undergone huge expansion, partly boosted by the oil-driven financial liquidity in the Gulf and the rapidly growing number of Muslims seeking more religiously-sanctioned products. However, the western world too has begun several banks
Insurance and pension funds, particularly from Europe, entering the fray, with the aim to tap the boom in the Gulf economies led by soaring profits on the back of strong oil prices during the past five years.

Thursday, September 9, 2010

Credit Repair after bankruptcy

Repair Credit after bankruptcy is hard but it can be done.You need to create a good transaction history to apply for the credit card.Try to avoid bankruptcy because its badly affect on your credit score, but it don't mean you can loss everything after bankruptcy.
Try to avoid unnecessary expenses or postpone the unwanted expenses for future.Try to use cash for most of the transaction.First you can prepare the monthly budget for your income and expenses this help you to get the actual picture of your financial condition.

You can apply for the secured credit card where you need to deposit a specific amount with the issuing company as a guarantee deposit.This deposit is work as your credit limit.
This guarantee money is refunded when you make a good transaction history with the bank.

Its very easy to get the personal loan or car loan and the installment payment for your loan is also measure for your credit history.If you have made all your installment payment on time than this will go in your favor.

You can apply for store card, this is the secure credit card. Getting the unsecured credit card is the last step.
If you can create a good credit history by paying all you installment on time and there is no default history than you can apply for the unsecured credit card. If you rejected than apply on next half of the financial period.

These are the steps for repair credit after bankruptcy, but if you control your unwanted expenses than sure you don't need to face the problem of bankruptcy.
Future financial condition is not predecide but at least you need to make proper arrangement that if there is any adverse condition arises tan what is your backup support o get out of the financial crunch.

Many time people select the the big installment option for payment of there loan and try to come out of the debt as soon as possible, but when they select the big installment option they donĂ¢€™t assume there future uncertain financial condition. Suppose your monthly income is $20000 and your mortgage installment is $10000 and due to some reason there is medical bill come $ 50000 ,or you got married or you become a father than your monthly expenses increases and you cannot be able to afford the huge installment payment. This is better than you can fix your installment 40% of your income to avoid these circumstances.

You made all your A to Z expenses with card so, you made a huge expenses on different payment.Try to avoid unwanted expenses or make the cash payment when there is small transaction and always try to use your resource by planned manner. Budget is the best way to control your unwanted expenses.