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IS CREDIT WEALTH

Total Wealth Credit Solution enables you to realize your unique goals and passions as an
integral part of your overall wealth management strategy.
Total Wealth Credit Solution is an industry-leading financing platform engineered to
streamline your access to liquidity and help you take advantage of investment opportunities. An
exclusive, fully-integrated wealth management platform,
Total Wealth Credit Solution enables you to conveniently borrow under a single investment
line of credit, against a broad range of personal and/or holding company assets.

NEGATIVE ASPECTS OF CREDIT


Ease of Accumulating Debt
Perhaps the most dangerous aspect of credit cards is that they make it very easy to accumulate
debt. You can use credit cards online and at almost any restaurant or retailer. This makes it
tempting to go on shopping sprees and ignore the true cost of buying things until you start
getting big credit card bills in the mail. In addition, credit card companies often set low minimum
payment requirements each billing cycle that don't put much of a dent in the amount you owe.
Even if you always a make your minimum payments, if you use a credit card while you have a
balance, you accumulate debt.
High Interest Rates
Interest rates are the cost of borrowing money. When a lender gives you money, you have to pay
back the original sum plus an extra amount -- your outstanding debt multiplied by an interest
rate. Credit cards are notorious for carrying high interest rates. Many cards carry rates well over
10 percent, which make it expensive to carry a balance. The high interest rates on credit cards
combined with the ease of spending create a slippery slope: Once you build up a balance, it can
be difficult to climb back out of debt because you have to pay a lot each month just to account
for the interest you owe.
Costly Cash Withdrawals
You can use credit cards to take money from an ATM, but cash advances with credit cards are
much more expensive than ATM withdrawals with debit cards. The Federal Reserve states that
cash advances often incur flat fees equal to a percentage of the amount withdrawn; when you get
money from an ATM, you could lose 3 or 4 percent right off the top. In addition, credit card
companies often charge higher interest rates on cash advances.
Other Fees
Credit card companies can impose a host of other fees and penalties that can push up the cost of
owning a credit card. Some companies charge annual account fees that you have to pay even if

you always pay your balances in full each month. Other common fees include late-payment fees,
over-the-limit fees and foreign transaction fees.

8 Bad Decisions That Can Lead to Credit Problems

1.Opening a credit card before youre ready


There are certain things you need to do to. Understanding money, being able to budget,
and having a steady income are a few prerequisites for opening a credit card. You also
need to be responsible enough to maintain a balance you can afford and to make your
payments each month. The credit card issuer will only require you to have regular
income and sometimes a good credit history. Learning the other key principles of credit
card readiness is up to you.

2. Opening more credit cards than you can handle


For beginners, one credit card is enough. Making more money doesnt mean you can
necessarily handle more credit cards. Managing multiple credit cards requires discipline and
organization. Youll have to keep track of your balances, available credit, payment amounts, and
multiple due dates all while paying your other bills and making sure youre not creating more
debt than you can handle. Its indeed a juggling act and if you cant handle it, you may end up in
debt and unable to afford your credit card payments.

3. Taking on more financial obligations than you can afford


Your monthly income can only accommodate a certain amount of expenses. When
those expenses exceed your income, youll run into problems. You may unknowingly
take on more than you can afford because youre not reasonably or completely
considering your income and current expenses before you agreeing to a new recurring
expense. If your monthly expenses are too high for your income, credit problems are
inevitable.

4. Avoiding financial issues

Running from problems is never a good solution and will almost always make things
worse. If youre having money problems, face them. Take a good look at what money
you have and what expenses you have to pay. Figure out which expenses you can get
rid of to make it easier to afford your necessary expenses. If you ignore financial
troubles when all the signs are right in your face, it will only get worse.

5. Neglecting non-credit payments


Credit cards and loans are reported to the credit bureaus each month. Other payments,
like cell phone and utility payments, arent reported regularly. But that doesnt mean you
can pay these late or completely neglect them. If youre skipping payments, its a sign of
a bigger issue that could eventually impact your credit card payments if youre not
careful. Not only that, defaulting on any type of payment obligation can impact your
credit since unpaid balances are often sent to a collection agency not too long after you
fall behind.

6. Withholding payment in retaliation to your creditor


Some people think that withholding payment from their credit card issuer is the solution
to credit card disputes. Unless you follow a specific process, withholding payment will
hurt you and not your card issuer. The Fair Credit Billing Act gives cardholders the right
to dispute credit card billing errors within 60 days. Youre allowed to withhold payment of
the disputed charges while the credit card issuer investigates. Otherwise, you must pay
up if you want to save your credit. Skipping payments under and other circumstance will
lead to late payment entries on your credit report.

7. Failing to adjust/evaluate spending after major life changes


Getting married or divorced, having a baby, relocating to a new city, losing your job,
taking a pay cut, and buying a house are all situations that can majorly affect your life
and your expenses. When you experience major life changes, its important to
reevaluate your spending to ensure your income will still cover your expenses. You may
need to cut some expenses so all your spending will comfortably fit your income.

8. Taking on credit or loan products you dont understand


Adhering to the terms and conditions of your credit cards and loans is key to keeping
your account in good standing. A 2013 study from J.D. Power and Associates reveals

that only 47% of credit card customers completely understand their credit card terms. If
you dont understand your credit card or loan, youre more likely to make critical mistake.
Credit problems develop over a period of time, which can make them hard to miss.
Continually monitoring your payment and spending habits is the best way to recognize
earlier that credit trouble is looming.

CLASSIFICATION OF CREDITS

a) investment credit- capital are on credit first; more on buying properties (lots).
b) agricultural credit- for farm improvement (usu. farmers only); loan for acquisition of farm
utilities.
c) export credit- 4 parties: exporter, local bank, importer and local bank of the importer; need
capitalization; payment is only bank to bank.
d) real estate credit- same with investment but limited to house and lots.
e) industrial credit- for purposes of mining, fishing, factories (usu. businessmen); excludes
farmers.

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