In Trouble

In Trouble

                 Consumer often have a trouble when they couldn't pay the bill. There are several reasons why consumers don't pay between 48% are loss of income such as unemployment is 24% , when a person doesn't have a job ( unemployed) of course they don't have income and they don't  have the money then they can't make any purchase. Illness is 16%, a sick person certainly can't work and make money as well, even they need spend more for hospital treatment and other costs. And then other like a divorce, death is 8% if he or she death who will pay the debt bill . It make a trouble. And also 25% are overextension like Poor money management, emergencies, materialism, need for instant gratification. 20% are defective goods and services, 4% are fraudulent use of credit, and 3% are other. 

                  There are warning signs of trouble such as you don't know how much you owe, you often pay bills late, you get a new loan to pay old loans, you pay only the minimum balance due each month, you spend more than 20% of your net income (after paying rent or mortgage) on debt maintenance, you would have an immediate financial problem if you lost your job, you're spending more than you earn, using your savings to pay for day-to-day expenses. If you ignore some of these signs, then you will have trouble.

                 The First steps you must take if you can't pay your bills are Take another look at your budget, trim your expenses, limit all your expenses. Be realistic about what you can afford, never buy any goods and services if you feel unable to pay. Contact your creditors , tell them why you can't pay, that you intend to pay, and how much you will able to pay, you may be able to work out a new payment schedule, if possible, continue to make the minimum payments. For the others steps like Consilidating your debts, by loan consolidation you make only one payment, usually lower than the total amount of your monthly debt payments, best to use only when combined with credit counseling, if you own a home, consider your spending habits carefully before you take out a home equity loan, you could end up with a loan large credit card bills if you don't charge your spending habits. Fair debt collection practices, a debt collector must inform you, in writing, of the amount of your debt, the name of the creditor, and an explanation of your right to dispute the debt, if you dispute the debt, the debt collector must give you written proof of the debt. Wage garnishment, a legal procedure that withholds a portion of your earnings for the payment of debt. Car repossesion, your rights, you can buy back car by paying the full amount owed on it plus repossession expenses. Wage earner bankruptcy, you can get benefits such as you can sometimes salvage your credit, you can avoid being harassed by your creditors, by being required to draw up a budget and determine exactly how much you can actually afford to pay, you're forced into being realistic about your budget.

My reflection, I think it's better not to do what already there are warning signs of trouble because if the problem has appeared will be difficult for us as consumers, when we can't pay our debts so we will be billed debt collectors, even billed by force and even up imposed penalties such as imprisonment.  If you can't pay your bills are Take another look at your budget, trim your expenses, limit all your expenses. Be realistic about what you can afford, never buy any goods and services if you feel unable to pay. Contact your creditors , tell them why you can't pay, that you intend to pay, and how much you will able to pay, you may be able to work out a new payment schedule, if possible, continue to make the minimum payments. So, if we can avoid lest trouble in our lives.

Consumer Awareness

Consumer Awareness

         Consumer awareness is essential for consumer before deciding to purchase a product. First, Consumers should be more throughly find out product to be bought. Searching the brand of products that we want, quality of product, warranty from the store and the price of products on the market. So, we aren't deceived in the purchase transactions of products or services. There are several ways how to avoid being a victim such as don't be pushed into a decision we must think and think before making decision to buy a product or service, Request written information about organization and product or investment, don't buy anything on terms you don't fully understand, request the name of federal agency by whom the firm is regulated or registered, investigate the company or organization, find out about refund, return, and cancellation policies, don't believe testimonials you can verify, don't provide any personal financial information, if you must, hang up.

                Telemarketing fraud  is a form of scam businesses to consumers who buy a product by phone, email, or online scams. There are high pressure sales techniques like a insistence on an immediate action, offers that sound too good to be true, a request for your credit card number for any purpose other than to make a purchase, an offer to get your money quickly, a statement that a product or services is free, followed by a request that you pay something, claims of an investment that is "without risk", inability or refusal to provide written information or references about the company, product, service, or investment, suggestions that you should make purchase or investment based on "trust". Email or internet scams also have several common denominators such as request for personal information through emails or websites, request for money, offers of lottery or prize winnings, offers of jobs that are "too good to be true".

            There is one of experience a telemarketing fraud. The victim was Muhammad Bayu Nugroho (18th years old), resident of A. Yani street Seberang Ulu I, because his intention to get the phone with the type of Iphone 6 cheaply, Bayu even fooled Rp. 10 million. Until the end  Bayu make eventually report to the Police of Palembang. The incident began when he found an online shop with the name " Electronic Rezki" when he opened the site olx.co.id. the Iphone 6 sold for Rp. 750.000. He believe because the offender shows the address where he lived as well as evidence of other deliveries. Agree with the price, Bayu directly transferring the money to the fraudster. But unfortunately, after the money was transferred Bayu's dream goods never delivered. According to Bayu the fraudster said  if the goods order is currently being detained at the custom office, and Bayu must transferring Rp. 1.200.000 so he transfered again. However, not only there. The fraudster back requesting additional funding for the same reason, up to a total loss of Bayu reached Rp. 10 million. Bayu aware have become a victim of fraud after being told by his sister.
 

              From the experience above. So, our reflection are We must be careful when shopping through online sites. Because the fraud case trade through online sites have a lot of casualties and very often the case. And also we must consider any purchase carefully before signing a contract, Don't be deceived by letters that look official or urgent, read the letter carefully, think carefully before you attend a sales meeting, if you attend a sales meeting, don't sign a contract or give a salesperson a deposit right away, find out about the seller's reputation, if a salesperson makes claims that aren't in the contract, don't sign the contract, when you will get your first paycheck, the total cost of the work at-home program , the company's reputation. and if you have been a victim of fraud , report it immediately to the police

*source : http://www.tribunnews.com/regional/2016/02/12/beli-iphone-6-seharga-rp-750-ribu-bayu-kehilangan-rp-10-juta?page=1

The Influence of Advertising

The Influence of Advertising

         

              Advertising is a form of marketing communication used to promote or sell something, usually a business's product or service. Commonly used advertising techniques such as information, status, peer approval, physical attraction to others, hero endorsement, entertainment, independence, unfinished comparison.

                 I want to share my experiences about my desire to buy a product. The product is Smartphone. When my phone was broken and I couldn't find out any information quikly, I felt it was very difficult. I had to fend for my self to get actual information. So, immediately thought that I had to immediately buy a handphone. I count the number of my saving, because its still not enough so I borrow my parents's money to be able to buy a handphone. Then, I searched the smartphone that have the features I want. My parents told me to buy smarphone and have a quality that can be said to be durable and branded. So, can used up to 4 years and if I wanted to replace it with a new one using my own money when I has finished collage.

                 

                I searching for information on the various brands of smartphone and I found a lot of brosure, advertising that advertise smartphone that has advanced features . I read and compare multiple smartphone that I want. I compare Samsung Galaxy E5, Samsung Galaxy J5, Samsung Galaxy J7.  Samsung Galaxy E5 and Samsung Galaxy J5 have the same features but Galaxy E5 is more lower that Galaxy J5. J5 have a 5 MP front camera with flash, O.S. Android lollipop v.51, 13 MP back camera, 8 GB memory internal, 128 GB Micro SD, batteray Li-Ion 2600 mAh while Samsung E5 have a 16 GB memory internal, 8 MP back camera, 5 MP front camera without flash, O.S Android kitkat 44.4, 64 GB Micro SD , batteray Li-Ion 2400 mAh. So, if Galaxy J5 compared Galaxy E5. Galaxy J5 is superior than Galaxy E5. Next, I compare Galaxy J5 and Galaxy J7. If Galaxy  J5 compared Galaxy J7 . Galaxy J7 is superior than Galaxy J5 . The size of Galaxy J7 is 5,5 inch (-69,6% screen to body ratio), body dimensions 152,2 x 78,7 x 7,5 mm (5,99 x 3,10 x 0,30 in) , weight 171 gr, chipset machine Qualcomm Snapdragon 615 Exynos 7580, CPU Quad-core 1,4 GHz Cortex-A53 Octa-core 1,5 GHz, GPU Adreno 405 Mali- T720MP2 .

                     My Reflection, Before determining the products to purchase. We should searching for information about the product, can be through advertising of such product or we browsing internet. By advertising and browsing we become to know the advantages of the product before we buy the product. After I searching for information about Samsung Galaxy E5, Galaxy J5, Galaxy J7 and compare the difference. So, I choose to buy Samsung Galaxy J7 with several advantages compared E5 and J5. 

                    

                

Cars and Loans

Cars and Loans

     Cars and loans are borrowing money in the bank to buy a car. Before we discuss about buy a car, we must know what cost of owning and operating a motor vehicle. There are ownership fixed cost and operating variable costs. Ownership fixed costs consists of Depreciation, is a decrease in value of assets, and allocation to periods in which the assets are used. Interest on loan, if we buying on credit we must to pay a interest on loan. Insurance, is used to ensure that the vehicle you buy can receipt compensation in case of unwanted things like accidents and lost. Registration fee, license, taxes, if we have a vehicle we must pay the registration fee, license, and taxes of vehicle. And than we also have an operating variable costs, consists of Gasoline, oil and fluids, tires, maintenance and repairs, parking and tolls by this cost that vehicle can operated.

       And also we must know how much can we afford. You never borrow more than 20% of your yearly net income. if your earn 5.000.000 a month after taxes, than your net income on year is 12 x 5.000.000 is 60.000.000. Calculate 20% of your annual net income to find your safe debt load. 60.000.000 x 20% is 12.000.000. So, you should never have more than 12.000.000 of debt outstanding.

       Monthly payments shouldn't exceed 10% of your monthly net income. If you take home pay is 5.000.000 a month. 5.000.000 x 10% is 5.000.000. So,  your total monthly debt payment shouldn't total more than 500.000 per month.

          After we calculate how much can we afford, we also deciding to spend our money do I really need this item? we must know we are really need the item or not. Is it worth the time I spend making money to buy it? Is there a better use fo my money right now?. And than we also deciding on the right purchase like a  I want the high level of quality, I need the high level of quality. I want the dealer offer a good services and repairs, I wait until there's a sale on the type of car I want . I want to buy a new car not a used car. I should choose a car with a well-known name like a Toyota. I ask to my friends or anyone who owns the type of car I want like an automatic car. and I can get more information by an otomotif magazines say about type of car I want. If you want to buy a used car, before you begin shopping, decide how much you can afford to spend, decide which car models and options interest you, and the others. If as you shop find out what type of warranty comes with the car, what type of warranty comes with the car, what type of service contract comes with the car. you can get a used car by sources are new car dealers, used car dealers, private parties, or other sources. For shopping a new car, Decide which car model and specific options you wants, decide whether you need an optional service contract or credit insurance. Warranties are very important, when we buy a car we had to get warranty. Warranties such as As-is (no warranty), Dealer warranties, Implied warranties, and Unexpired manufacturer's warranties.

               Like a Credit card, shopping for a car loan also must have variable include APR, Length of the loan, Monthly payment, Total finance charge, Total to be repaid. The formula to calculate the total cost of loan same as calculate the total cost of credit card. There are type of auto insurance coverage, liability 40-50% of premium, collison up to 30% of premium, comprehensive about 12% of premium, medical, uninsured motorist, towing and labor, rental reimbursement. How insurance rate are set personal characteristics, geographic location, driving record, vehicle characteristics.
               
              Terms and conditions of individual documents you must completed, the application form can be obtained at the nearest branch of car loans company, copy of ID prospective customers, copy of family card, copy the last 3 months of saving balances, copy SPT, telephone bill, electricity bill, copy of TIN , slip salary, copy of property separations agreement, copy of SIUP for entrepreneurs or self- employed.


               My reflections with  cars and loans, we will be more easy to buy a car but before we buy a car we have to consider both of our budget, from the quality of the car what we want to buy a new car or a used car, want to buy at the dealership or by private parties and even of its installment payment contracts,  and of course with warranties.

Credit Card

Credit Card

            Credit Card is a payment that connects a issuer, card holder, seller, and middleman. Credit Card is useful when we need convenience in transaction, if we don't have to carry cash. And to applying for a credit card we must know the costs used applying for a credit card. The cost  are Annual Percentage Rate (APR), Grace period, Annual fees, Transaction fees, and Balancing computation method for the finance charge.  Annual Percentage Rate (APR) is the interest rate for a whole year rather than just a monthly rate, that the cardholder or borrower will pay a loan. Grace period is the cost if you repay past grace period, you would pay the grace period cost. Annual fees are the fee we must pay, so we can use our card. The annual fee is nothing recorded in the first bill when we use a credit card and have been included in the bill when we have a credit card for one year. Transaction fees are the fee we must pay with a credit card we can also make cash withdrawals at ATM in cooperation with a network of credit card we have. But there is the interest charged on this cash wirhdrawal transactions.

              Credit card also have many of features such as Credit Limit, How widely the card is accepted and what services and features are available.There are several levels of credit card start from that the class for all  up to grade class of the super exclusive. There are many types of credit cards but the most common are platinum card and gold card. Many type of credit card offers features that are attractive and profitable as get additional discounts when shopping, get a certain merchandise and the other features. 

                       We must to calculating finance charges such as : average daily balance, we pay interest on the average balance owned during the billing cycle. The creditor figures the balance in our account on each day of the billing cycle, then adds together these amounts and divides by the number of days in the billing cycle. Adjusted balance, we pay interest on the opening balance after subtracting the payment or returns made during the month. Previous balance, we pay interest on the opening balance, regardless of payments made during the month. Past-due balance, no finance charge is added if the full payment is received within the grace period. If it isn't received, a finance charge for the unpaid amount is added on to our next bill. To figure average daily balance we should calculate the total cost of loan. To estimate the total cost of loan amount of the loan times APR times number of years. And than to estimate the amount of monthly payments by total to be paid divided by number of month of the loan.

                Credit card also have a credit card do's and dont's . Shop around , we must look at various sources. Read and understand the contract, before we want to apply a credit card we must read and understand the contract carefully, don't rush into signing anything, one a contract is signed, get copy of it , know the penalties for missed payments. Know our cost , figure out total price when paying with credit, make the largest payment possible, know the penalties for missed payments, buy on installment credit only after you have evaluated all other possibilities, don't be misled into thinking small payments will be easy.

CREDIT

CREDIT

                 Credit is a payment that which can be done without having to spend cash at the time of transaction. There are advantages and disadvantages of credit. For advantages, credit able to buy needed items now, quick,and easy to buy item we want. Just give our a valid credit card and we get our needed items. Don’t have to carry cash, yeah.. if we use credit, we don’t have to carry a lot of cash because we can make transaction by credit. Creates a record of purchases, with credit we know how many our purchases, our debt, and also our limit credit payments. More convenient that writing checks, if we are shopping at the mall, of course we can’t pay by checks, usually the shop only accept payment by cash, debit or credit card. So, It’s more convenient. Consolidate bills into one payment, by using a credit card, we can also consolidate bills into one payment so it will be easier for us when pay the payment. For disadvantages credits, with credit we will get charge interest on loans granted. May require additional fees, and also credit can require additional fees like a late fee when passing term credit repayment. Financial difficulties may arise if one loses track of how much has been spent each month, because we can’t know that spending has exceeded the limit of available funds on credit. Increased impulse buying may occur, we’re easy to buy, then we can’t increase implusif.

                  

                     Before we open the Credit account, we must know the three Cs. The three CS is three point most important to handle a creditor to set the use of credit. The three Cs consists of  character, capital, and capacity. Character as a guarantee, will you repay the debt? That is whether you have used credits before, you have characters that can be trusted to repay the bills on time. Capital as a guarantee, What if you don’t repay the debt? To have a credit that right you must have capital like a savings account or property that could be pledged as collateral or futures investment to can repay the credit. Capacity as guarantee can you repay the debt? You have been working regularly in an occupation that is likely to provide enough income to support you use credit.

              

                     My reflection, I think the credit is useful when we need convenience in transaction but the effects of credit is very dangerous when we were unable to repay credit payment. Our possessions could be seized  and we lose everything that we have to pay the bills if we can’t repay credit payment. It should be to have a credit account we should really be able to repay our obligations as creditor and fulfill the three Cs as three point most important to handle a creditor to set the use of credit.

Banking Services

Three Banking Model in 2016

              Bank in the future including an optimized branch network, sales force effectiveness, Multi channel integration, and than digital distribution. In the revolution bank of 2016 there are three new models of bank, first The Intelligent Multi-channel Bank, second The Socially Engaging Bank, and third The Digital Ecosystem Bank. Each have different advantages.

                  Of the three I choose one to explain that is the socially engaging bank. The socially engaging bank is a bank who give us a facilities information by a social media network. 400 % increase in facebook usage since 2009 until 2011. like a e-banking , the socially engaging bank give a information about our saving , customer behaviors, interests, expectations and preferences about customer issue. American Express has also several social media with " link, like, and love" by facebook, twitter and the other social media.

                 My reflection, I think many people likes this bank, because the socially engaging bank is so simple and fast access with technology in the future. We can access our account everywhere we want to know, simply, fastly and accurately. In order to survive and thrive the model we choose to be may require developing a mix of capabilities. 

Buying a Home 

          Having own your home is s dreams of everybody, and than we buy a home is very appropriate to our tastes, what we needs and wants, from location, strategically or not, its building type, exterior facilities, interior design and much more to be able our comfortable while in the house.

    

          The first, I need to buy my dream house, after I collected  the money to pay down payment. I will find the location of the house is strategic located on the city center and public facilities, and I also need to know how the security of the region, how the state of water, soil, and absorption must be good in order to avoid floods, after finding a suitable location and get a reliable estate agents that the real estate agents can account for all of the rights that I will receive the good condition of the building, until the certificate of ownership of land and buildings is legitimate.

         After getting a suitable location, the house in accordance with the type I want, I have to prepare how to design the building and for that I have added some renovations. I'll build some exterior facilities at the front and the back of my house, because it has a large  land with the type of home without a ladder but still widely in it because I like it. The front of the house I built a gazebo and for around I will  plant many flowers and fruit trees that seem more calm and will increase the absorption. besides the fruits can be consumed, and also so that my family and can make outdoor party when we wants. For behind the house I would build multilevel swimming pool with depth of first to second meters with stones surrounded by white gravel around the pool that to prevent slippery floor for the pool water can also serve to increase blood flow, and also I will add a beach chair along the table to relax ourselves after swim, and alongside of my backyard house. I also add some flowers, because I really like flowers and its more fresh.

         For interior construction, I have three bedrooms, with two bathrooms inside and one common bathroom, a living room, a living room, a kitchen and a dining room, and than a garage. A minimalist design that comes with wallpaper soft blue sky and more flowers design too, to design my bedroom, I use wallpaper artsy theme tree and I'll add a few picture frames in the branches of the tree design be like this :

        My reflection about buying a home, to buying a home that suits our needs and wants, we would need a substantial budget to make it happen. And for me, my dream house is a house that is strategic located on the city center and public facilities, and I also need to know how the security of the region, how the state of water, soil, and absorption must be good in order to avoid floods because if it is less important to make us uncomfortable when staying at home and it can be said that we fail to have a dream home.