You are getting a few student loans to support your study. After the graduation, you need to start repaying these student loans. These student loans come with different interest rates and they have different repayment due date for each month. You may find it difficult to manage your multiple student loans and any late payment or miss payment may hurt your credit rating.

Student Loan Consolidation Program is a loan repayment program for college students and graduates with multiple student loans to make their repayment easier. However, before signing on the dotted line, it's important for students to understand some basic facts about consolidation.

What A Student Loan Consolidation Program Does?

The student loan consolidation program allows you to combine all your outstanding student loans. For example, if you have three separate government student loans, you can consolidate them into one single loan. Technically, all three of those loans will be considered paid in full and a new loan will be started in their place. The basic concept is you are getting a new loan to pay off all your outstanding student loans; which mean instead of having 3 student loans with 3 repayment amount and due date, after the loan consolidation, you only have one loan with one repayment amount and one due date. It will enable you to manage your loan easier.

How A Student Loan Consolidation Program Will Help?

By consolidating your outstanding student loans through student loan consolidation program, you basically can enjoy at least 3 benefits:

1. More Convenient

With multiple student loans, you will have to make multiple payments every month; that means there are more paperwork and due dates to keep track of. There are more chances that you may miss one of them and cause you to make late payment. You can get rid of this hassle by consolidate them into single repayment and make you easier to keep track only one payment with one due date and one repayment amount.

2. Save You Some Money

All loans come with interest, so do the student loans. Although student loans normally have lower interest rate, student loan consolidation program may be able to negotiate a lower interest for your new consolidation loan than all your current loan rates and save you some money on interest. For example, you have 3 outstanding loans may be required to make $150 payments each month to all three lenders. That is a total of $450 per month. After consolidation with only one payment is required and that payment is usually much less than the combined payments from all of the loans. This can be huge benefit to you especially if you are new graduate who are just getting started in your careers and who don't have the income necessary to cover large loan expenses right away.

3. More Repayment Possibilities

Consolidating your student loans may open up additional opportunities for you. You may be offered with deferment choices and/more repayment possibilities. These offers can come in handy if you wish to further your education to another level, struggling to find employment in your field or experiencing financial hardships.

In Summary

Managing your multiple student loans are not too hard but you can make them more convenient and easier by combine them into one through the student loan consolidation program and enjoy the benefits it can offers. However, before enrolling into any of the student loan consolidation program, you need to understand the details and ensure the package is really inline with you financial needs.

Debt consolidation feels like instant freedom.

When you can not easily manage your debt, bundling it all up seems like a good idea. The most common way to do this is a debt consolidation loan. This loan takes all of your debts and wraps them into one loan.

Don't confuse it with bankruptcy, though. You still have to pay this money back. You are simply refinancing the money that you have borrowed.

Before you do this, you should know both sides of the story.

On The Good Side

Manage your money much easier with just 1 bill to pay each month. Gone is the anxiety as each bill comes in, like a Chinese water torture. Instead of incomprensible statements from credit cards, gas cards, student loans, and car loans, it can seem a blessing to get them down into one payment.

You'll get lower monthly payments. Since everything is tied into one payment, the amount that you need to pay monthly can be quite a bit lower.

Your interest rate is often lowered too. This is especially true on high rate credit cards.

Probably the biggest benefit is that you will not have to deal with creditors anymore.

On The Bad Side

It is crucial to realize that your debt is still your debt. It hasn't lessened and it hasn't gone away. You still have to pay it off.

It may take longer to pay off the debt. Because you have a lower monthly payment, you are likely to pay longer to get the loan down.

You will pay more in the long run. Finance charges and interest rates add up and they stretch out the amount that you owe for a longer period of time.

You will often need to secure your loan through property.

It may let you believe that you are more secure than you actually are. You may think that your debt is under control. And, you may think that you can keep spending now. That is not a good idea at all.

The Balance

When it comes to deciding on debt consolidation, look at all of the pros and cons.

You should shop around to find the lender who will offer you the best consolidation loan. You should examine the interest rate, the amount loaned, and whether it is a fixed or an adjustable rate loan.

You should know the type of consolidation loan that you qualify for and what the underlying factors are. Make sure to include whether you have a good credit rating, if you own equity, and whether you have a good amount of income coming in.

There are other forms of debt consolidation as well. One good one is a credit counseling service. These organizations help by working between you and the creditor. They can help to negotiate a lower interest rate from some lenders, as well as teach you how to more effectively manage your money.

Whichever path you choose, do it before the choices are taken away from you.

If you are like many students and recent graduates, you very well have amassed a great deal of student loan debt.  In this regard, you may be looking for ways in which you can bring your outstanding student loan balance under control.  You might want to consider the various consolidation loan student availabilities that you can take advantaged of in this day and age.  Through consolidation loan student opportunities, you can take an affirmative step towards brining your outstanding student loan debt under control.

There are a number of benefits to availing yourself of what is available in the way of consolidation loan student availabilities.  The primary benefit that you can obtain through utilizing and taking advantage of consolidation loan student opportunities is a savings in the amount of interest you have been paying on multiple student loans.  As a general rule, consolidation loan student programs offer interest rates at a level under what you normally have been paying on your multiple outstanding student loans.

One of the other significant benefits of a consolidation loan student program is found in the fact that you will be able to relieve yourself of recurring late fees and related delinquent charges that you may be encountering in regard to outstanding student loans.  If you are like many people who have racked up student loans, you very well may be facing ever increasing late fees and the like over time.  Again, through consolidation loan student programs, you can rid yourself of the burdens of late fees and other charges.

An added benefit of taking advantage of a consolidation loan student program is found in the simple fact of convenience.  If you have acquired a number of different student loans, you find yourself juggling multiple payments each and every month.  This can be time consuming and even confusing in some instances.  With the implementation of a consolidation loan student plan or scheme, you will only have to make one monthly payment, easing the burden of keeping track of a multitude of payments each and every month.

There are a number of different financial institutions that now offer consolidation loan student programs.  There are companies that specialize specifically in offering people consolidation loan student opportunities.  In addition to the companies that specialize in consolidation loan student programs, many traditional lenders (such as banks and savings and loans) now have implemented special consolidation loan student programs for students and graduates.  Therefore, you have a variety of sources for a consolidation loan student program to chose from in this day and age.

By taking the time to shop around and consider different consolidation loan student availabilities you will be able to find a consolidation loan student program that best meets your needs and obligations.  Through research and a bit of proverbial homework you will be well on your way to brining your student loan debt well under control, to bringing your financial house into order now and well into the future.  Rather than continually paying for your education, you will make your education pay for you.

With higher education costs on the rise, many people these days have several student loans. These are not just medical students with several loans, but average students at public universities. It can help for those trying to pay them off to consolidate student loans into one bill and thus one payment. There are many advantages to having one loan besides the single payment each month though. Some that you may not be aware of are lower interest rates, a way to improve your credit rating, lowering monthly payments.

Applying for an individual student loan can lower the interest rate because places offer incentives to use them for the loan. Some companies offer a lower rate for having the monthly payment automatically deducted from your account. There is also a benefit by making so many consecutive payments, on time, and that showing will lower the interest rate. This of course will make your payoff amount decrease since more money will go to the principle instead of interest.

Having a single student loan can help your credit rating because of how your credit score is figured. Part of the score is made up of how many outstanding debts you have as well as the total amount due to each. Getting a student consolidation loan will give you a higher loan amount due but only for one loan and not the several others that you currently may have. Thus, your score will go up and even get better as you pay off that loan. It will not be an instantaneous fix as credit companies can take up to six months to report a drop of a loan off your report. But if you don’t use your credit unwisely in this time period your score will raise and when you do apply for something at later time you can possibly get a lower interest rate for that loan as well. Which will have you making lower payments on that item and help you pay off that loan faster too?

Of course a single payment with a lower interest rate is going to give you lower monthly payments. Owing several companies with their own payment rates can make the total paid each month much more. One lump payment is going to be lower just for the reason that only one creditor is loaning the money with one rate. And each of these companies will have their own interest rate, which changes the payment. An individual loan will have more of the payment going to pay off that loans interest and principle at once over several loans where it can vary from loan to loan how much is paying it off. And most importantly right now rates are very low and getting a consolidation loan can also have you paying less because your rate can drop tremendously, depending on what it was before. While it can start your loan term back to the length it was when you got the student loan, with lower payments and a lower interest rate, you should be able to pay it off even faster and get out of student loan debt quicker than if you kept the individual loans.

You must never underestimate the value of having good credit. You will definitely need your credit score in the future. For example if you are a student, you’ll need to borrow a certain amount using a student loan in order to attend school. At this point, your credit history will definitely matter and will have a big impact on getting you the funds that you need.

If you are applying for a student loan, your creditor or the lending institution will probably request a copy of your credit report and the credit score, which comes from an authorized credit-reporting agency. This will help identify your credit criteria and will determine if you are qualified for a loan. And if you are, your credit score will influence what interest rate you will be paying for the funds.

You must be able to demonstrate good credit to be approved by most of the private student loans. This also applies to the loans you might need such as auto loans, business loans and mortgages.

Here’s what you can do to keep your credit score high and your credit good.

1. Make your payments prompt and timely. Make sure that you don’t miss any deadline.

2. Pay the minimum monthly payments. This will repair your credit score remarkably.

3. Limit the number of credit card accounts you have open at any one time.

4. Maintain available credit on your open accounts.

5. Request a copy of your credit report at least once a
year from each of the three national credit-reporting agencies.

6. Check your reports for errors. You must clear up any errors that do appear in your report right away, time is critical in this.

7. Don’t open multiple accounts all at one time, especially if your credit history is not good. This tends to look a bit risky to lenders because you are taking on a good deal of possible debt, all at once.

8. Remember that you must know how to prioritize your needs. Leave those credit cards that are not needed aside for a while. Then after you have recovered from all the other debts, you can add these cards back into your wallet. The new accounts will lower the average age of your account and this is something that counts toward your FICO score.

9. Don’t open accounts that are not necessary. They will just be a burden. Even if you have a very high income, you can still encounter some difficulties.

10. Make sure that you don’t close accounts with the thought that the account will be removed from your record. That will not help at all. Closing accounts can sometimes even hurt your score.

If you are student who has just learned how to drive a car or is headed off to college, most of you may not have been given access to your parents' credit cards.  But college student credit cards may provide a solution for young people in need of credit anyway because building good credit with student credit cards may be more beneficial in the long run than borrowing your parent’s credit card. Believe it or not, getting a new student credit card in your name is relatively easy - even if you have minimal income, no co-signer and no credit history. To get your own student credit card, just follow these simple guidelines.

Get A Job

If you don't already, consider part-time work around campus on in your neighborhood. It can be for only a few hours a week on campus. If you're going to have your own student credit card, you'll need to make payments on a monthly basis. Having your own checking and savings account at a local bank or credit union is also a good idea. Most banks have special student accounts that require a very little deposit to open. Establishing a history at the bank and accumulating some savings, will give you more opportunities for credit in the future.

Surf the Net

As a college student, you probably have been bombarded with offers for student credit cards. Maybe you've opened your mail to find a fake credit card inside with your name on it. Or, you've seen those annoying credit card applications that always fall out of your new textbooks. You may have also seen credit card representatives with booths set up on your campus giving away free t-shirts and hats to those who complete an application. Don't take the first offer you get, shop around for the best value. The Internet is one of the best places to comparison shop for credit cards.

Read the Fine Print

Beware! Not all student credit cards are alike. Some may have really cool designs that you can pick, such as college logos, sports teams or graphics that act as an extension of your personality. But as the saying goes, "don't judge a book by its cover." Although all college student credit cards provide you with cash in the form of plastic, they can vary greatly by a number of factors: credit line offered, annual percentage rates (APR), annual fees, late fees, cash advance fees, over-limit fees and special perks. APRs can vary from 0% to 29%; annual fees $0 - $50; late and over-limit fees can be as much as $30/month, each. Before you sign on the dotted line, carefully read the terms and conditions of the student credit card, especially the fine print. Pick the card that offers you the lowest APR and fees.

Use It (Wisely) Or Lose It

Many Americans, including college kids, are in debt over the heads. Before getting your student credit card, be sure to understand everything about credit. Credit cards make it easy, and tempting, to go on a spending spree. But spend more on your college student credit cards than you make you'll quickly find yourself drowning in debt. High interest rates, late fees and over-the-limit fees can cause your monthly balance to get way out of control. If you can't pay your bills, your credit history will be destroyed. Bad credit can keep you from getting student loans, buying a car, purchasing a home... even getting your dream job.

Once you have a job, a bank account, savings and an understanding of what credit is all about, you are ready for your first student credit card! If you've done your homework, then you can be confident that you will select the college student credit cards that will help you to establish your credit. Spend wisely and reap the benefits of a good credit history.

College student credit cards have replaced student loans as a freshman’s first experience with student credit. At the sophomore level, out of a sample of 100 students, over 90 are found to hold at least one college credit card. The question is – why do many students find themselves in a vicious cycle of debt with their college credit cards? Why are they astonished with the huge bills they receive each month? Most importantly – must it necessarily always be this way for a college credit card user or is there a simpler way?

There are plenty of statistical indicators to suggest that students run up credit bills regularly yet they do not pay down their card balances nearly enough. Approximately 21% of college credit card users have balances between $3,000 and $7,000. The number of credit cards in an average student’s possession keeps increasing – a sign that they might be acquiring new cards to pay off balances on old ones. But this only leads inevitably to their overall credit balance increasing even faster, adding more debt to a seemingly never-ending downward spiral of debt.

Five Steps to Avoid the College Credit Card Debt Trap

The core reason of this pathetic plight is the absence of a disciplined and planned system of spending. If you, as a student, wish to optimize the use of your college student credit cards, use the following guidelines to plan your spending:

- Pay your bills on time. Late fees are the most unnecessary source of additional credit expense. Always ensure that at a minimum, you always meet the minimum payment on your bill. Ideally, you should try to pay more than the minimum amount to reduce overall charges.

- Use the 20/10 rule. Be careful that you never, ever borrow more than 20% of your annual net income and never spend more than 10% of your monthly income on your monthly payments. In other words, balance your credit budget to avoid irregularities in monthly payments.

- Plan your credit expenditures. With college credit cards at your disposal, it is easy to give in to the temptation of impulse purchases. This can lead to ever increasing credit card balances
over a long period. It is ALWAYS better to plan purchases using your college credit card so you can ensure you only make purchases that you know you can easily pay off.

- Avoid cash advances. The finance charges for these are generally much higher than standard credit purchases and can be very expensie.

- Avoid approaching your credit limit. There may be extenuating circumstances that will require you to incur unplanned expenses, but if you stay well within your credit limit by avoiding unnecessary charges, you can enjoy the satisfaction of knowing that you can comfortably use your card when you really need it.

The Boon or Bane of College Credit Cards

If the guidelines outlined above are kept in mind, you will find that you can live comfortably with college student credit cards. These tips are especially useful for those who envision needing an extra job in order to pay your off credit card bills. Ideally, a balanced credit budget and a zero card balance is the best way to handle your credit card expenses. So, while college credit cards can be extremely helpful to certain individuals, they can also prove to be a huge detriment to those who do not budget and plan to use them accordingly.

When applying for student loans, it’s so important for prospective college students to calculate their finances as best they can to receive the appropriate funding. From tuition and books to room and board, living expenses and food, students should make sure to secure the funds they actually will need to get them through each semester at college.

By applying for the correct amount, students won’t find themselves in a bind or get themselves into a credit card nightmare.

Way too many college students these days get into big trouble with credit cards. It’s unfortunate that students too inexperienced to know better receive enticing credit card offers in the mail. Usually when a credit card offer looms over a student, it’s like dangling a carrot in front of a rabbit. The student grabs the credit card offer without thinking ahead. Credit cards oftentimes appear to be a quick fix or a type of “free money,” and they then become the remedy students think they need.

Student Loans versus Credit Cards

If anything, it’s the opposite. Like student loans, credit card debt must be paid back. There’s a huge difference though. Student loans usually are taken out with fixed interest rates, depending on the type of loan and a students’ credit rating, amount of loan, repayment terms, etc.

However, there’s usually a catch when students receive those “amazing” credit card offers. The catch is sky-high finance charges, some as high as 22 percent! However, oftentimes students don’t think about the finance charges when they accept the credit card offers. It’s kind of like, “I’ll think about that later.”

Some students who haven’t taken out enough student loans to cover their college expenses resort to credit cards to pay for necessities, books and even rent! They’ll use their credit cards to take out cash advances, which usually have even higher finance charges than by simply charging.

Never-ending Cycle of Debt

There are students who accept more than one credit card offer. After hitting the limit on one credit card, it’s easy to accept another and then another, and so on. With the high interest rates and finance charges attached to these credit card offers, students easily can rake up more than they bargain for. When students pay off credit cards by only paying minimum monthly payments, they are making their financial situation worse. Finance charges accrue month after month. It could take almost a lifetime to pay off the credit card bills.

1. Blowing your school loan money!
Instead of using your financial aid for books, tuition, room & board, many students will choose to finance their extravagant lifestyle of partying, clothes, gadgets, and eating out. These school loans you've worked so hard to get should be paying for your education, not you social life...so use the money wisely. You'll be paying them off for many years to come.

2. Credit Card Debt!
Even responsible adults can rack up some hefty credit card debt, but students, who have no viable income besides their school loan money, and what cash mom & dad give them, have no business getting multiple credit cards. This is a recipe for credit disaster, because now students will not only have their school loans to repay when they graduate, but large credit card balances. Nellie May, the largest student loan maker, says that most graduate students have an average of $5800 in credit card debt.

3. Not Paying Your Bills on Time!
Racking up huge credit debt and not paying your bills on time is a good way to ensure that you can't purchase a car, rent an apartment or even get a cell phone after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your good credit rating. You'll thank yourself in a few years.

4. Bad Budgeting!
Being a college student generally means living on a fixed income. Weather it be your financial aid money or money from a part-time job, or even money from Mom & Dad, the cash is usually limited and setting up a budget is important. A monthly budget doesn't mean you can't do the things you want to do, but simply a plan so you know the "must-pays" actually get paid. Figure out exactly what bills and expenses you have every month and plan for those first. Any money after that you can budget for social / recreational items like CD's and kegs.

5. Going to a College that's too Pricey!
Instead of going to your local community college for your pre-req classes and spending $25 a unit, many students feel they have to go to the 4 year university straight out of high school. Many end up returning home and going to a C.C. anyway, but attending a local school first is a good way to save money, and get those required classes out of the way cheap. After you've completed these courses, transfer to a 4 year school to complete your undergraduate degree. This will save thousands upon thousands of dollars that you would have racked up on student loans, and been paying off well into your 30's.

So many of the bad financial decisions students make is a result of poor financial education. Students haven't been taught by their parents or high school teachers the importance of maintaining a good credit score, paying bills on time, and budgeting income. Wise spending during the college years will ensure that the money you make after graduating will be spent on things you want, not credit card payments, collection companies and school loans.

For students who are unable to get student loans, the fun and kicks of college might be virtually non- existent. There are many more payments to make apart from books and Tuition. Just imagine how difficult it can be for students who also have to pay living expenses because they have to live apart from their families while in college.

Student loans can be a lifesaver because it saves many students from breakdowns that can occur as a result of the stress of payments and college courses. At the beginning, a student may find it difficult to get one of these student loans. This doesn't mean that getting student loans is a piece of cake.

These Federal student loans are supported by the government and this sees to it that you don't pay high interest rates. Any student who opts for the private student loans will have to pay increased interest rates and will need good credit records. Subsidized and unsubsidized rates are available for students obtaining student loans.

Except if the interest is being paid by another person that is when rates may accrue while the student who takes the loan is still enrolled in school. It helps a student to know that he/she won't have to pay any extra rates while he is still in school. You might not be so lucky if your type of interest rate is unsubsidized because rates will be accrued even while you are in school.

If these payments aren't made, the interest will keep rising thereby increasing the amount to be paid back, but the good thing is that you will have more time to pay. Are you a student interested in a federal loan? Then go ahead and fill out a FAFSA form. You may also have to fill a college scholarship profile application form.  No need to start getting hot and bothered over the cost because it is almost free.

FAQs about getting a student loans:

What is a 'credit record'? A credit record is, in essence a documented history of any type of credit you have been given for the last six years. It discloses how much you have been lent and whether you have ignored any obligations etc. A credit record allows potential loan providers to search through your financial past so that they will be able to make a determination as to whether to extend you a loan. The data on your record is complied by credit reference agencies for instance, Equifax and Experian. They take data from public documents (e.g. the electoral roll, legal judgments etc) and from loan companies as well as financial institutions: e.g. credit accounts, credit applications.

What is a 'credit check'? A credit check is a search performed by a possible lender to determine your suitability for borrowing. They will look at your credit record to see your current and previous credit history. They can then award you a credit score to identify whether the manner in which you control your financial affairs fulfils their criteria for being granted credit.

What is a 'credit score'? A credit score or credit rating is an approach that would-be loan providers use for calculating the credit eligibility of a borrower. They will research the potential borrower's credit file, the data on their application and the amount of loan requested. They will then employ a numerical rating process to evaluate the size of 'risk' connected to lending to the potential borrower.

Credit Reference Agencies :

Experian is one of the important credit referencing agencies in the country. Loan providers will turn to credit referencing agencies to find out about the qualifications of an applicant founded on their credit record. This is known as a credit file. As a consumer, it's possible to get a printed copy of your report from Experian to check that all the facts and figures on it are truthful and that your particulars aren't being used in some fraudulent way.

Equifax is one of the significant credit referencing agencies in the country. Equifax gathers all your financial data from various places to establish a file that details your personal credit history - i.e. your credit report. When you fill out an application for any kind of credit, loan providers will examine you report to see your credit record. You may get a printed copy of your credit report when ever you like to check that all is in order. The Equifax website has plenty of valuable advice on sensible financial choices and guarding yourself from fraudulent schemes.

The vast majority of government student loans cannot be gotten rid of easily, even filing for bankruptcy will not resolve these debts. The only way that these types of loans can be taken care of in bankruptcy is if you can prove that they are a substantial hardship on you and your finances and this is a pretty hard ting to do in most cases, especially since the rest of your debts will be taken care of with the bankruptcy filing.

If you do wish to try to get your student loans discharged you will have to prove that there is no way you will be able to pay this debt according to the schedule that has been laid out, that even in time you will still not be able to pay it according to the same schedule and that you have tried unsuccessfully in the past. A good faith effort is necessary. This means that you have not tried lying to your creditors and that you are working as much as you can to get the money that you need but are still coming up short.

What can be discharged and what cannot can also fall directly onto the shoulders of the bankruptcy judge. If you are lucky and you get a judge that allows for these discharges then you might just get away without having to pay off these loans, or at least part of them. In many places it is left up to the judge to go with their own gut feeling.

Keep in mind that while it is true that lenders cannot be sending you bills to pay while you are in bankruptcy, they have to wait until it is over, that does not by any means mean that interest will not be accruing on your loan. And since you do not have to pay, most people don't and once they come out of bankruptcy they find themselves in a whole new batch of trouble than when they went in.

Student loans are flexible loans, they have many more options than some other loans out there. If you find yourself having trouble paying off your student loans let the lender know. Tell them exactly what the problem is and they will most likely be willing to work with you to get around it. If the plan and the schedule that you have set is just not a possible one for you to follow then talk to the lender about coming up with a new one. The thought of contacting lenders scares most people but it works, you are not going to get in more trouble, in fact what you are doing is heading trouble off at the pass. If you have defaulted on your loan you will even find such programs as rehabilitation programs that help you get you out of default. These programs are great, all you have to do is show your good faith effort by paying a lower amount for a set period of time. If you manage to stick to this it will show the lender that you can be depended upon and the lender can take you out of default.

Another route that many people take instead of bankruptcy is loan consolidation. The Direct Loan Servicing Center, working under the auspices of the Department of Education will give you several different options to choose from if you need some help to pay off your loans. Their standard plan is a great one, it is simple and it is effective. All you have to do is pay $50 each and every month until the balance is paid off in full or until 10 years is up, whichever comes first. There is another plan which will keep you paying for anywhere from 12 to 30 years. While this is a great option for those who just don't have much money at all it is one of the most expensive ones simply because 30 years of interest really adds up to a significant amount of money. These are just a couple of the payment plans that you can find available to you. If you are in financial trouble talk to your lender! So you might not be able to resolve your debt completely all at once, at least there are options out there that will give you some peace of mind.

Under the accepted standards of borrowing student loans, it is stressed that you can borrow up to the cost of attendance, as determined by your school, less other financial assistance you might be receiving.  Other financial assistance refers to grants, work-study, and scholarships.  And, the cost of attendance typically involves tuition, books, fees, room and board, and other miscellaneous living expenses.

Also, the cost of attendance as determined by your school has figures that are meant to apply to a wide group of students. Oftentimes, you may not need to borrow as much as your school allows.  Note that it is best to borrow the minimum amount possible so that you can lessen your overall financial obligation later.

If you prefer to consider borrowing student loans to finance your education, just expect that some of the lenders these days have borrowing limits placed on student loans. For instance, the federal government places annual and aggregate borrowing restrictions on federal student loans, and the aggregate limit is usually the total amount that every student can borrow in the span of his or her education.  Given this fact, it is then necessary to examine and evaluate the terms of every loan you plan to take on for the annual and aggregate loan restrictions.

Aside from that, carefully and honestly assess your current financial status, including any financial commitments you have made before entering the school of your own choice. Understanding the repayment obligations of every commitment you’ve made is the key here. Note that over time you will be responsible for these prior obligations in addition to any education debt you take on, and your education loans are not given to cover these prior obligations you have.

Finally, consider the realistic determination of your future income. You can perform some research on the current job market and start salaries in the area you plan to pursue. Just note that you will be paying for your education with your future income.  So, when choosing a student loan program, be sure to do some investigations on the loans that offer you alternative repayment plans which can assist you in managing your payments, especially early on in your own career.

Top Three Myths about Student Credit

This article will explain a few of the different myths about student credit and bust those myths wide open. Whenever you talk about finance in general, there are many false statements out there. These statements can be spread from well-meaning people but these statements can cause you to follow bad advice which can hurt your finances.

The first myth about student credit is that you must open a credit card to begin building credit. This is completely a false statement. When you talk about credit and beginning a credit history, this can involve loans as well. Student loans are reported on your credit report but these often aren't used to begin building credit since they are often deferred until after the graduation of a student. Credit history is important but to build a good credit history, monthly payments must be made towards credit accounts.

Depending upon where you live, you may want to inquire at your bank or another bank about taking out a credit helper loan. Some banks will allow you to borrow a small sum and then work to repay that. This can help you in a couple of different ways. You are able to rebuild your credit starting at a younger age than many do. By borrowing this thousand dollars and paying it back, you are also saving money because the money will be yours once the loan is paid off. You are developing good positive financial habits.

The second myth is that you must carry a balance on your credit card so that it can be positive information on your credit report. This is completely false as well. Your credit report will show on time payments and it does not matter whether they are full payments or partial payments for your credit card balance. While you are making the payments, you will want to make sure that if you keep a balance on the credit card, you should keep it below fifty percent of the available balance.  Your balances on your credit report do play a part within your credit score.

The third myth is that a higher credit limit is always a better thing. This does help with your balances and keeping your balances below fifty percent of your total credit limit. To give a little background on the next part of this point, think about getting a loan. When a lender pulls your credit report, he or she may calculate your debt to income ratio using a percentage of your overall credit limit. This can show that you have a chance to get yourself deeper in debt and can raise your debt to income ratio. This can cause the loan to be declined if you are close to the debt to income ratio of the loan company's underwriting standards.

Hopefully these top three myths about student credit have given you good information. It is always good to have people help you with your finances but you must make sure that the information is accurate. Much information given about credit and finances is based off of past truths and this is not the way for you to get ahead financially.

This article will talk about the necessities of managing your student credit card. If you have read some of the other articles, you have seen that it is important to manage your credit cards. This article will talk about how high the student credit card debt level is.

Let's start with the undergraduate years. Using Nellie Mae as the source (largest provider of student loans in the United States), the average student comes out of college with roughly $2200 in credit card debt. If you are a graduate student, the figure jumps to $5800. To look further at the American household, the average credit card debt is a little less than nine thousand dollars.

Why were those numbers given straight off in this article? What kind of pattern can you see when you look at those numbers? Here is what you should see: the bad habits which began as an undergraduate continued into the graduate years and into the working years. The student credit card debt balloons eventually to almost nine thousand as an average with many households coming in at higher numbers than the nine thousand dollars. There are bad financial habits which are in place and are never corrected.

Let us take this back specifically to you. You do not want to find yourself in this situation when you graduate from college or from graduate school. Here are the actions you need to take make sure you avoid student credit card debt.

Pay off your credit card every single month. It is very easy to tell yourself you will pay it off next month but next month turns into the following month and often that balance can continue to grow eventually to a level you never thought it could reach. Carrying a balance is a slippery slope because it is acceptable for one hundred dollars one month and maybe two hundred dollars the next month.

Be honest with yourself. If you find you are pulling out your credit card for something you don't need, you may be overspending. Retail stores promote their credit cards so heavily because it has been proven that people spend more with credit cards than if they have the cash with them. You do not think as much about what you are spending when you use your credit card.

Keep track of how much you spend on the card on a monthly basis and keep track of this weekly. Your credit card balance can get out of control if you only check out how much you owe once a month. Weekly check-ups allow you to change your behavior before it becomes a problem at the end of the month. This allows you to act instead of react.

Hopefully this article on student credit card debt has given you helpful knowledge. Credit cards can be a good thing or a bad thing in your life. It is how you manage the card or let it manage you. Most people let their debt manage their lives instead of them managing their lives with less debt. There is a very simple but powerful difference in that previous statement. Good luck!

Budgeting for your Student Credit Card

When you use your student credit card, you must ensure that you have sufficient funds to cover your balance of your statement. This article will give you an indication why you must only spend with your credit card what you have available.

To start this off, think about your life as a high school student and what has happened so far. For most high school graduates who have lived with their parents through their teenage formative years, they have not had to worry about finances. Coming onto campus with little knowledge of finances can be a tough combination with the rewards that credit card companies are willing to offer if you open up a credit card. The first key when thinking about budgeting for your student credit card is to read what you are signing up for. The rewards you will receive for signing up for a new credit card pale in comparison to the finance charges if you run up a balance on your credit card.

Take this fact into consideration when you are filling out a credit card application. The average graduate from college owes roughly twenty-two hundred dollars on credit cards, according to Nellie Mae who leads the nation in student loans. If you think about this fact and how long it can take to pay back this money when including interest, you would probably not take out that credit card.

If you have $2200 in credit card debt and your interest rate on the card was twenty percent, you would be paying over four hundred dollars in interest. Most students feel that they will pay this back when they graduate and make money in the real world. What is not often considered is how long this can take to pay back and it can be difficult to pay this back with other living expenses such as rent, car payments, insurance, and the list goes on. What seems like a big check often is much less once you have taken into consideration the costs of living everyday life.

To make sure you are correctly budgeting for your student credit card, you should only spend what you can pay for. This should be included in a monthly budget if you need to. Some students will only put gas on a credit card or groceries and have that money sitting in their checking account at the end of the month. Taking the time to understand when you should spend money and not spend money is a key to making sure that you properly maintain a disciplined budget with your credit card. Budgeting and not spending beyond what you can pay for is a skill which must be learned at a young age. If you do not develop this habit at a young age, you could find yourself continuing with the same habits as you get older. This can partially explain why the average American household owes roughly nine thousand dollars in credit card debt.

Hopefully this article on the importance of budgeting for your student credit card has explained why it is so imperative. Seeing the type of credit card debt the average student finds him or herself in should explain completely why you want to budget for your student credit card.

There seems to be a great deal of talk about government bailouts these days. Every time you hear new financial news it seems that some company or group of companies are asking the government for help to get them out of a financial mess. But what about the individual? Are there any government-sponsored bailout programs out there to help the average U.S. citizen when he runs into financial problems? Do government debt consolidation programs exist?

Generally speaking, there simply aren't many government-sponsored programs to help the average citizen who is having problems managing their growing debts. When speaking of debt consolidation programs, many people immediately think of loans which are arranged as a means to bring several outstanding loan balances together into a single debt. While such consolidation loans may be available, other repayment programs work by an agency or intermediary acting on behalf of the borrower to negotiate more favorable loan terms with their lenders. Most often these are not directly sponsored by the government. There is one area, however, where government debt consolidation programs may be able to help: student loans.

In the United States, federal student loans are guaranteed by the U.S. government, and therefore are treated differently than other sorts of consumer loans. If you're looking for government debt consolidation of your federally guaranteed student loans, you can look into one of the many student loan consolidation programs available. Under such plans, your existing student loans may be purchased and closed by a special student loan consolidator, or by the U.S. Department of Education.

Before you consider a government debt consolidation agreement, make certain you understand that student loan consolidation should not require the payment of any fees by the borrower. This is decidedly different than private lending arrangements where the borrower is usually required to pay fees at the time of the loan's closing. In the case of private lending, whether it be unsecured or secured using a tangible asset such as your home as collateral, there are almost always fees that must be paid at the time the loan is assigned. In some cases, these fees will be rolled into the new loan agreement and won't require out of pocket payment. In the case of government debt consolidation of students loans, no such fees are required nor would they be rolled into the new consolidated loan.

Government debt consolidation of student loans is beneficial to the borrower by helping to protect their credit rating. However, it should be noted that not all federal student loan holders report their account to all the credit bureaus, so there may be no material impact on the borrower's report or rating.

So if you happen to be carrying a number of student loans and you're looking to the government to help, make sure you investigate the possibility of government debt consolidation through a student loan refinancing program. In the long run you may find that turning to the provisions provided by the federal student loan program may work in your favor.

Are you ready to throw in the blanket on ever getting out of debt? Don’t do it. You may have a chance to reduce your debt with unsecured debt consolidation loans. These loans are somewhat more difficult to obtain, but it is well worth the effort. You will find tips on how to use unsecured consolidation loans to put you back in charge of your debt. Instead of the debt controlling you, you will control the debt.

First it is important for you to understand the difference between unsecured loans and secured loans.

Let’s suppose you are a student just starting out your freshman year of college. Shortly after being accepted by your school of choice, you started receiving pre-approved credit cards. You accepted the offer and within 10 days or so you received your card. The first thing you did is go out and buy text books for your classes; to the tune of several hundred dollars.

Being short on cash you put it on your new credit card. You just made your first unsecured debt. If you forfeit on the loan for some reason, the credit card company can sue you, but they can’t take your school books from you. You did not have to use the books for collateral to get the cash to pay the book store.

Now let’s say you need to take a student loan to pay tuition, lab fees, additional books, housing, food and etc. Because of the amount you need, the bank or lending institution has said they will loan you the money. However to get it, you are someone, is going to have to put up collateral to secure the loan. Just in case you forfeit on the loan, this gives the bank the right to foreclose on whatever property was put up to secure the loan.

It’s time to move forward and the years have passed and all your student loans, family debts and credit card bills are burying you. You need a way out, but you don’t own any real property. Other than your car and it has a lien against it.

Your first step is to go to your personal bank and apply for an unsecured debt consolidation loans. If you have a good record with your bank, no hot checks or defaulted on any loans with them, you may well qualify for an unsecured consolidation loan.

Your personal banker will work with you to determine which of your loans should be consolidated in the new loan and which ones will not be. One of the reasons for doing this is most credit card interest rates will be much higher than a bank loan. However, depending on the type of student loans you have, you may have a lower interest rate, than what the consolidation loan will have.

There is also a good chance your bank may have a credit counseling service or be able to refer you a reputable non-profit credit counselor. This service could prove to be invaluable to you so as you don’t get yourself in over your head later on.

Normally you will find many unsecured debt consolidation loans will range from six months to five years. Whereas most secured consolidation loans will have a longer time for repayment from 10 years and up. Obviously the shorter the time fame for repayment the quicker you will get your debt reduced.

As you have seen there are two types of consolidation loans you may qualify for. Both have the same goal and this is to reduce your debt burden.

Depending on what your personal situation is and your ability to repay unsecured debt consolidation loans you may find the relief you are seeking.

Do you have more than $10,000 in unsecured credit card debt? Perhaps you also have more than $ 30,000 to $50,000 in secured debt such as cars, boats, recreational vehicle to name just a few. On top of that you have your mortgage payment and student loans. Are you thinking its time to do a debt consolidation loan?  This article will give you some ideas which may help you make your decision.

One of the most stressful events in your life and your families life is finding yourself buried in debt. Recent studies have shown that more than 60% of divorces, filed are caused by a crippling debt situation. In many of the cases the stress has led to domestic violence or worse.

Because of these financial problems many marriage councilors are referring their clients to professional financial consolidation councilors. Hopefully, for doing so those couples will have a cooling off period before the final decision is made on a divorce.

One of the things a professional debt councilor will do is compile a complete analysis on every bit of your financial obligations. Your responsibility will be to ensure you provide them with every single detail about the money you owe. There is a good chance they will even want a complete break down of every penny you spend and where.

Don't be surprised when your councilor keeps digging and digging until they have every scrape of information they can drag from you. Once your debt loan consolidation councilor has it, they will then do a calculation of the total debt with interest. Finally they will compare what your total repayment will be; verses a consolidation loan of all the money you owe.

In certain cases after the full evaluation of your debt problems your advisor may determine that a consolidation loan won’t do you any good. This involves taking into consideration your ability to repay all your indebtedness, plus the accumulated interest.
This being the case your councilor may well recommend bankruptcy in lieu of loan consolidation.

However, in the event they feel you are candidates for a complete consolidation, of your cash obligations, this is when the real work starts. Either you or your councilor will contact all of your debtors to determine what the pay off amount will be and the date it is good until. By doing this you will know to the penny how much of a loan you will need.

A special note should be made here. You should not be surprised if the credit card companies will offer to lower your interest rate. It’s much better for them if you don’t repay the bill in full. It also will give you a bit of an opportunity, to be able to keep the
credit card, at a much lower interest rate.

If you should decide to work with the credit card companies, in lieu of consolidating your money problems, you need to do your due diligence. Make certain you have the deal they offer you in writing and you know precisely what it means. If not you could be in worse trouble than when you started.

As you can see there is much to be considered before you make the final decision about how you are going to solve your current money obligations. A debt loan consolidation may take care of it now, but what happens down the road if you haven’t learned how to control your debt responsibly

These days, when you apply for a mortgage, loan or other form of credit, the lending industry will automatically scrutinise your personal credit history. In practice, you hardly need to tell them anything as within a fraction of a second, the lenders computers will lock into your credit file held by any one of the big three credit agencies; Experian, Callcredit or Equifax And you'll be amazed what they know about your finances!

For many years now banks, building societies and other lenders have been providing information about your finances to the credit agencies. They know about every credit applications you've made, the occasions you've been late or missed paying a loan, mortgage or credit card, the balances on your loans and credit cards and whether you just pay off the minimum each month - even your credit limits! The agencies also accumulated lots of other information about you provided by public records, the voters' roll and the public register of court actions where all county court judgements are recorded. Their computers then statistically analyse all this information and assess your application. So in this context, the credit industry argues that the more information they have about you, the more accurately lenders can make lending decisions.

Yet within this mass of information, there is one notable omission. Despite representations to the government, information about student loans and their repayment history's, is not provided to the credit agencies. The data is refused because student loans are a debt to the taxpayer, not a commercial business.

Prior to September 1998, graduates repaid their student loans by mortgage style direct debits collected once the graduate started earning over £15,000. But more than 59,000 of graduates from before 1998 graduates are understood to be in payment arrears to the tune, on average, of around £2,750 per graduate.

After September 1998, the system of collecting student loans changed. These days, repayments are deducted directly from salaries by employers along with national insurance and income tax. This method is far more efficient and avoids the possibility of bad debts.

The credit industry argues that it needs the information on student loans as they can represent a significant strain on the graduates' finances – especially following the introduction of top-up fees which results in the average student loans being much larger. These loans are repaid at the rate of 9% of the graduates' income in excess of £15,000 and can represent a significant drain on their monthly income.

Therefore, to fully assess graduates' financial situation the credit industry argues that it needs student loan information. The Association Consumer Credit Counselling Service agrees. A spokes person said, “Knowing whether a young person has a student loan and whether it is being paid back, is useful.”

Yet despite the pressure to share its information, the Department for Education and Skills remains steadfast in its decision to refuse permission to the Student Loan Company to provide information to the commercial sector.

Even the Citizens Advice Bureau wants this decision changed arguing that lenders need information on student loans to help ensure that graduates avoid taking on so much debt that they can't maintain their repayments.

But for now at least, the situation remains. The credit industry cannot obtain any history about student loans.

Every time you apply for credit, for example a credit card or a loan, the lender will request to see your credit history from a credit reference agency. The information they hold is so detailed that there's really no need for us to fill out that long application form, because within a fraction of a second they can see all they need to know from Experian, Equifax or Callcredit, the three main credit reference agencies. You would be very surprised to see just how much they know about you.

Banks, building societies and other financial institutions providing credit have been passing on details of your financial transactions to the credit agencies. Every time you apply for a credit card, every time you miss a mortgage repayment – it gets noted. They know whether you pay the minimum or the balance each month, they even know details of your credit limit on each credit card. They also look to public records, the voters' roll and the public register of court actions because that is where all county court judgements are listed. It all happens automatically, and when your credit history is requested, the computer will provide a statistical analysis of your financial habits and provide an assessment of your suitability. It enables, the industry argues, lenders to make an accurate judgement about whether they should lend you money or not.

However, there is one piece of financial information that the credit agencies are not allowed to access, and that's the student loans. Despite the industry's remonstrations to the government, nothing has changed, and they are not allowed to access the information. The reason? Student loans constitute a debt to the taxpayer, they were not funded by commercial business.

Before September 1998, the student loan system worked like this: once graduates were working and earning the national average, which was £15,000 at the time, they had to repay their loan on a monthly basis by direct debit. 59,000 of those pre-1998 graduates still haven't started repaying their loan, and each has on average a debt of £2,750.

In September 1998, the student loan system changed, and the system remains the same to this day. Now, repayments are taken directly at source, straight from the salary in the same way as national insurance and income tax. This method has been a lot more successful.

The lending industry is not happy about the student loan situation, their main argument being that they need to know, when considering an application for credit, if the applicant has extra financial responsibilities. The introduction of top-up fees resulted in increasingly large student debts, and as the post-1998 loans have to be paid off at a rate of 9% of the graduate's income once it has reached £15,000, it is a large portion of income to lose.

The Association Consumer Credit Counselling Service made the following statement: “Knowing whether a young person has a student loan and whether it is being paid back, is useful.” So they are in agreement with the lenders.

The Citizens Advice Bureau is also keen to have the information made public, because they feel that graduates could be taking on too much debt, and if lenders could see their student loans, they would ensure that graduates are not given the ability to borrow beyond their means.

However, the Department for Education and Skills is showing no signs of wavering on its decision to keep individuals' debts to the Student Loan Company private.

For the foreseeable future – the situation will remain the same and student loans information will be inaccessible to the credit industry.

Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion dollars traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. The Forex trading systems are similar in method, but each is a proven method of how to make money, how to learn about companies and how to follow what is going on with the money you are investing in the Forex trading markets.

You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker in person.  If you are interested in making money, you can do it on the Forex market, without having to have employees, or a broker to do this. You can get involved in learning about the investments in the Forex markets, and take on the responsibility for your own money, and making your own money. Many are starting their own businesses using their education and experience on the Forex market to make money.

The Forex market is one that is world wide, so there is sure to be something of interest to just about anyone that wants to expand their investments and expand their learning about money in the world wide markets. There are many experts in the Forex markets, and using the Forex trading system that you feel most comfortable with, you can be a Forex market expert as well.

There are no go betweens, such as large banks or such when you are involved in the Forex market. There are no need for fees and transaction fees when you do your own trading on the Forex markets. You can learn the Forex trading system that best suits your learning needs, and follow it to chart companies, chart growths, and to invest in companies that have a solid future. There are companies and markets through out the world that you can invest with, to increase your wealth and your investment portfolio.

A few different regions of trading exist in the Forex markets, with sessions in Tokyo, Asia Pacific, and in the Americas. Trading is always non-stop, and moving from London to New York, to Tokyo and so on again and again. You can invest in the US dollar, the Euro, the Japanese Yen, or in Swiss Franc among others.
You can find more information on http://www.broker-trading-system.com/  about Forex trading systems.

Trading money in the global markets can be great way to make more of it, it can also be a lesson in how to lose money quickly. More than $1 trillion is traded every day on the foreign currency exchange (Forex), and yet no centralized headquarters or formal regulatory body exists for this form of trade. Foreign currency exchange is regulated through a patchwork of international agreements between countries, most of which have some type of regulatory agency that controls what goes on within their respective borders. Thus, the foreign currency exchange actually is a worldwide network of traders who are connected by telephone and computer screens.

Although more international policing of money trading has occurred in recent years, authorities have had some successes exposing scams and frauds that victimize traders, especially newer ones. So if you want to try this wild world of trading, you need to be wary and not depend entirely on experts. Sure, experts can help you in explaining the working of foreign exchange markets and how the language of the Forex and its risks are unique, but you need a lot more training before you even consider entering this extremely risky trading arena.

If you have ever traveled outside the United States, you have probably traded in a foreign currency. Every time you travel outside your home country, you have to exchange your country’s currency for the currency used in the country you are visiting. If you are a US citizen shopping in England and you see a sweater that you want for 100 pounds (the pound is the name of the basic unit of currency in Great Britain), you would need to know the exchange rate. And that’s the way foreign currency exchange is used by the average shopper, but foreign currency traders trade much larger sums of money thousands of times a day.

HOW DO Economic Events impact Global Currencies:

When I asked several traders about their thoughts about using fundamental analysis as a part of their trading decisions, I have received two opposite responses.

RESPONSE of Trader A

Fundamentals that you read about are typically useless as the market has already discounted the price. I am looking at (1) the long term trend, (2) the current chart pattern and (3) identifying a good entry point to buy or to sell.

RESPONSE of Trader B

I almost always trade on a market view. I don't trade simply on technical information alone. I use technical analysis and it is terrific, but I can't initiate or hold a position unless I understand why the market should move.

There is a great deal of hype attached to technical analysis by some technicians who claim that it predicts the future.

Technical analysis tracks the past; it does not predict the future. You have to use your own intelligence to draw conclusions about what the past activity of some traders say about the future activity of other traders.

For me, technical analysis is like a thermometer.

Fundamentalists who say they are not going to pay any attention to the charts are like a doctor who says he's not going to take a patient's temperature. If you want to be a successful trader in the market, you always want to know where the market is- up – down- trending or choppy .You want to know everything you can about the market to give you an edge.

Technical analysis reflects the vote of the entire marketplace and, therefore, does pick up unusual behavior. By definition, anything that creates a new chart pattern is something unusual.

It is very important to study the details of price action to see and observe. Studying the charts is absolutely crucial and alerts to existing disequilibrium and potential changes.

For forex traders, the fundamentals are everything that makes a country tick.

The release of economic & inflation indicators (i.e., consumer spending, employment cost index, government spending, producer price index, etc.), political actors, government policy or an individual event can set the market in a frenzy. These have to be considered when making the decision “ to trade or not to trade.”

Technical analysis, is a way of using historical price data in different ways to predict the future price of a currency pair.

Fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices, and you SHOULD trade in agreement with the supporting technical indicators.

Foreign exchange traders put the most emphasis on technical analysis, because traders around the world use similar charts and tools in predicting market trends.

The reason the FOREX market can be so predictable some times is that if the majority are using the same graph for determining patterns and trends, then it is highly likely that they will act in a similar manner.

So several thousand traders who have all charted the same resistance line, for example, will most likely either set their trades and direction conform to that line.

When fundamental data is made available to the public there is a reaction from investors and speculators.

Information in the form of news and economic indicators is more vague than that of technical indicators. There is a lot of gray area in this type of analysis. The market will ultimately react to how people think the economic data compares to the current market situation.

Economic indicators usually reveal information that "Should cause a currency to go up in price" or "May cause a currency to go down". The words “SHOULD” & “MAY” in the quotes above reveal the ambiguity of the fundamental data.

Here is an example of what analyzing fundamental data is like. Let's suppose there are six economic indicators (there are a lot more).

Let's call our six indicators 1, 2, 3, 4, 5, and 6. Now we wait for the data from our indicators to be published in a financial magazine or at an online source. We get the readings for our economic data for the EURO as following:

Indicator 1: is in a range where the Euro may go up
Indicator 2: is in a range where the Euro should go up
Indicator 3: is in a range where the Euro could go down
Indicator 4: is in a range where the Euro usually goes down
Indicator 5: is in a range where the Euro could go up
Indicator 6: is in a range where the Euro may go down

By looking at the above indicators, you don't know what the Euro is going to do. Furthermore, currencies are always traded in pairs. So you would have to get the fundamental data for another currency pair and compare it with the EURO. I think you can image that this is not a simple task.

I do not want to discourage you away from fundamental data. The best way to learn is to learn about one piece of economic data at a time. Eventually you will build a puzzle from all of the fundamental and technical data and make more informed trading decisions.

10 REASONS TO START TRADING FOREX!

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:

1) FOREX is the largest financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

2) FOREX is a True 24-hour market.

The FOREX Market never sleeps.  Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

3) There is never a Bear Market in FOREX.

You can have access to a seamless exchange of currencies. Currencies trade in "pairs" (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long ( you bought) or short( you sold).

4) High Leverage - up to 400:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis - up to 400 times your investment with Fenix Capital Management, LLC and with some other brokers.

Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250.

Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a 10,000-unit currency position.

Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading , trade the Forex Market.

5) Price Movements might be Highly Predictable.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the "technical" methods and strategies.

Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

6) YOU don't pay commissions or fees to trade FOREX

When you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees , regardless of your account size.

Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$ 200 and they do not charge commissions or fees to trade or to maintain an account, regardless of your account balance or trading volume.

7) YOU don't have to pay trading fees or exchange fees.

There are none of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,
NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

8) HOW to Forex brokers make money if they don't charge commissions?

Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your counterpart is willing to trade. Your broker will receive a part of this bid/ask spread.

Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.

9) Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

Because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.

10) Instantaneous Order Execution

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )

What are *PIPS* ?

Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value.

When you see a FOREX price quote, you'll see something listed like this:

EUR/USD 1.2210/13

Explanation:

a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100,000 EUROS and you SELL 122,130 US$, or in other words you receive
122,130 US$ for 100,000 EUROS.

B) If you want to SELL the EUR/USD ( meaning you SELL EUROS and BUY US$ ) you buy 122,100 US$ and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US$.

The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is 3 or 3 pips.

Since the US dollar is the centerpiece of the FOREX market, it is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair.

For example a quote of USD/CHF 1.3000 means that fore one U.S. dollar you receive 1.30 Swiss Francs. or in other words, you receive 1.30 Swiss Franc for each 1 US$.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/CHF quote above increases to 1.3050 the dollar is stronger because it will now buy more Swiss Franc than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as EUR/USD 1.2080, meaning that for EURO you receive 1.2080 U.S. Dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one Euro, British pound or an Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the calculation is the same. For example, a quote of EUR/JPY 134.50 signifies that one Euro is equal to 134.50 Japanese yen.

HOW TO BUY ( going “ LONG ”)and SELL ( going “ SHORT ”) in the FOREX Market?

Keep in mind 2 very important rules:

RULE # 1) Cut your LOOSING trades and let your WINNING trades RUN

YOU WILL HAVE LOSING TRADES. Every FOREX trader has. The secret is, that a consistent, disciplined trader, at the end of the day, adds up more winning trades than losing trades.

When you and see on your charts, without any doubt, that you are in a losing trade, don't keep losing money. Most of the novice traders are lowering their stop loss just to “prove they are right” or “hoping that the market will reverse”. 99% of these trades, are ending up with more losses. Most of the profitable trades are usually "right" immediately.

Remember, smart traders know there are many other opportunities. CUT your losses short and compound those winning positions.

RULE 2) NEVER EVER trade FOREX without placing a Stop Loss Order.

PLACE a STOP order, right along with your ENTRY order, via your online trading station, to prevent potential losses.

Before initiating any trade, you have to calculate at what point ( price) you would be wrong, because the market changed direction, and would want to cut your losses.

To make profits, in the FOREX, a trader can enter the market with a *buy position* (known as going "long") or a *sell position* (known as going "short").

As an example let's assume you've been studying the EURO. The EURO is paired first with the U.S. dollar or USD.

Your trading methods, rules, strategies, etc., tell you that the EURO will rice in the next 2 weeks, So you buy the EUR/USD pair meaning you will simultaneously buy EUROS, and SELL dollars).

You open up your excellent trading station software (provided to you for free by Fenix Capital Management, LLC www.fenixcapitalmanagement.com ) and you see that the EUR/USD pair is trading at:

EUR/USD: 1.2010/1.2013

As you you believe that the market price for the EUR/USD pair will go higher, you will enter a *buy position* in the market.

As an example, lets say you bought one lot EUR/USD at 1.2013. As long as you sell back the pair at a higher price, then you make money.

To illustrate a typical FX SELL trade, consider this scenario involving the USD/JPY currency pair:

REMEMBER Selling ("going short") the currency pair implies selling the first, base currency, and buying the second, quote currency. You sell the currency pair if you believe the base currency (USD) will go down relative to the quote currency (JPY), or equivalently, that the quote currency (JPY) will go up relative to the base currency (USD).

HOW TO CALCULATE PROFIT OR LOSS?

The Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you've never been in the FOREX market before, but this process is continually calculated through your broker trade station (software). I show you this process below so you can SEE how a PROFIT might occur.

The current bid/ask price for USD/JPY is 107.50/107.54, meaning you can buy $1 US for 107.54 YEN, or sell $1 US for 107.50 YEN.

Suppose you think that the US Dollar (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell Dollars (simultaneously buying YEN), and then wait for the exchange rate to rise.

Your trade would be the following: you sell 1 lot USD (US $100,000) and you buy 1 lot JPY (10,754.000 YEN). (Remember, at 0.25 % margin, your initial margin deposit for this trade would be $ 250.)

As you expected, USD/JPY falls to 106.50/106.54, meaning you can now buy $1 US for $106.54 Japanese YEN or sell $1 US for 106.50.

Since you're short dollars (and are long YEN), you must now buy dollars and sell back the YEN to realize any profit.

You buy US $100,000 at the current USD/JPY rate of 106.54, and receive 10,654,000 YEN. Since you originally bought (paid for) 10,754,000 YEN, your profit is 100,000 YEN.

To calculate your P&L in terms of US dollars, divide 100,000 by the current USD/JPY rate of 106.54

Total profit = US $938.61

How Currencies are quoted and what moves individual currencies?

ONE of the best advantages in FOREX Trading is

The amount of money you need to place a trade (known as "margin") is all that can be lost !

You have to know, that despite the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will allow you to trade like you really have $400.000).

Forex trading is still less riskier than Stock or Futures Trading, where you can loose more than you have deposited in your account.

This type of LEVERAGE does NOT EXIST in the equities or futures market

In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you can’t protect yourself, even by having placed your protective stops.

Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account.

But because of the FX market’s deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are almost eliminated.

Orders are executed quickly, without slippage or partial fills. And finally, there are no margin calls. For your protection, the broker will automatically close out some or all of your open positions if your account equity falls below the level required to hold the positions.

Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance.

Currencies are traded in dollar amounts called “ LOTS”

In Forex trading, with most Brokers, you have the choice between 2 different lot sizes.

Standard Lots or Mini Lots.

One Standard lot is equal to $100,000 in currency. The margin requirements, using a 400:1 Leverage, would be US$ 250, in other word you control $100,000 worth of currency for only 250 US dollars.

You mean, depositing $250 with a broker, I could trade 100,000$ worth of currency ???

NO, be aware, that your account size has to be more than the required margin of US 250. For example, if you place an order to buy 1 Standard lot ( @100,000) of USD/JPY and USD/JPY is quoted as 112.10/112.13, you buy USD/JPY at 112.13.

Your account balance would be $220, because you paid 3 pips or $ 30 for this trade.

If you would close this trade immediately, you have to sell it at 112.10 (the bid price) , for a loss of $ 30.

In fact you could not get executed on this trade, as the brokers trading platform would reject your order, for the reason of having insufficient funds in your account).

So, your account balance has to be minimum $280. $250 for margin and $30 for the trade.

BUT....IF, after you have initiated the trade to buy USD/JPY at 112.13, and the USD/JPY falls the next second 1 pip ( approx. $8), your position would be closed automatically, because of margin deficit.

I will explain later about having an adequate account size to trade the Forex Market.

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded.

The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency.

Some of the most common symbols used in Forex are:

USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound or cable
JPY - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade the USD by itself. You always need to BUY one currency and SELL another currency to make a trade possible.

Some of the most traded currency pairs are:

EUR/USD Euro against US Dollar

USD/JPY US Dollar against Japanese Yen

GBP/USD British Pound against US Dollar

USD/CAD US Dollar against Canadian Dollar

AUD/USD Australian Dollar against US Dollar

USD/CHF US Dollar against Swiss Franc

EUR/JPY Euro against Japanese Yen

The currency left of the / is called the base currency.

The currency right of the / is called the counter currency.

When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD.

If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency.

The best way to remember is, by just thinking of the entire currency pair as one item.

If you buy it...you buy the first currency and sell the second currency. If you sell it...you sell the first currency and buy the second currency.

That means you would to be able to short-sell with no restrictions so you could make money when the market drops as well as when it rises.

The problem with traditional stock market or commodity trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.

Why is FOREX trading so popular?

Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse ( most of them have wireless Internet connection).

If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection.

When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry.

FOREX Trading is Economical and Start-up Costs are Low!
You can open an account to trade Forex with as little as US$ 200 at he most brokerage firms.
I personally do recommend  Fenix Capital Management, LLC, which offers  a state of art Trading platform, that allows you to place orders directly by clicking  on the chart.

The Main Benefits of Trading the FX Spot Market are:

YOU don't pay commissions or fees!
YOU can trade 24-hours a day !
YOU can trade up to 400:1 Leverage !
YOU can have FREE Streaming executable Price quotes and live charts!

It is important to know the differences between cash FOREX (SPOT FX) and currency futures.

In currency futures, the contract size is predetermined.

With FOREX (SPOT FX), you may trade electronically any desired amount, up to $10 Million USD.

The futures market closes at the end of the business day (similar to the stock market).If important data is released overseas while the U.S. futures markets is closed, the next day's opening might sustain large gaps with potential for large losses if thedirection of the move is against your position.

The Spot FOREX market runs continuously on a 24-hour basis from 7:00 am New Zealand time Monday morning to 5:00 pm New York Time Friday evening.

Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva and New York/Toronto) ensure a smooth transaction as liquidity migrates from one time zone to the next.

Furthermore, currency futures trade in non-USD denominated currency amounts only, whereas in spot FOREX, an investor can trade in almost any currency denomination, or in the more conventionally quoted USD amounts.

The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic lulls in liquidity and constant price gaps.

The spot FOREX market offers constant liquidity and market depth much more consistently than Futures.

With IMM futures one is limited in the currency pairs he can trade. Most currency futures are traded only versus the USD.

With spot FOREX, you may trade foreign currencies vs. USD or vs. each other on a 'cross' basis, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: (will be continued)

RISK WARNING:

Risks of currency trading: Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value, given the possibility of losing one's entire investment. Speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.

What Is FOREX or FOREX MARKET? PART I

The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.

That is larger than all US equity and Treasury markets combined!

Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.

The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.

Whether you are aware of it or not, you already play a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currency, particularly in the US Dollar. By holding US Dollars, you have elected not to hold the currencies of other nations. Your purchases of stocks, bonds or other investments, along with money deposited in your bank account, represent investments that rely heavily on the integrity of the value of their denominated currency ¨the US Dollar. Due to the changing value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial status. With this in mind, it should be no surprise that many investors have taken advantage of the fluctuation in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.

Example: suppose you had $1000 and bought Euros when the exchange rate was 1.50 Euros to the dollar. You would then have 1500 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with.

Example:

You might see the following:

EUR/USD last trade 1.5000 means
One Euro is worth $1.50 US dollars.

The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.

RISK WARNING:

Risks of currency trading

Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity).The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.