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What are Garnished Wages?

If you owe money to another it is sometimes possible for this to be deducted from your salary. Garnished wages refer to any money that is taking from your pay check for this purpose – it can also be deducted from other payments such as royalty checks. In most instances this situation will occur because a court has ordered it to be done; it could be to pay child support or to settle monies awarded by the court. If the payroll of a company receives an order to garnished wages then they must comply with this.

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What Is a Private Equity Firm?

A private equity firm specializes in high risk investments that can produce impressively high rewards. They deal in those assets that aren’t normally available to the public to buy. Such a firm is made up of a collection of individuals who have joined forces to invest in this type of asset. Those who manage the investment will be rewarded with a share of the profits and a management fee.

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What Is a Balloon Payment?

Loans can be repaid in a number of different ways. The creditor might be expected to pay back the money in regular equal amounts over a certain amount of time until the debt is repaid. This is not the only way of doing things though. A balloon payment refers to a large lump sum that will be due at certain times during the repayment period. In a lot of instances this large payment will be made at the end of the loan.

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What are Liquid Assets?

Sometimes we need to get our hands on cash in a hurry. This can not only be important for the individual but also for a business. Most of us will have different assets at our disposal, but it is not always possible to turn these into cash when we need to. Those assets that we can easily covert into currency are referred to as liquid assets. These also will usually be an asset that can be converted into money without any significant loss within a period of 20 days. For instance, you would probably have no problem turning your home into cash quickly if you dropped the price low enough, but this doesn’t really mean that the asset is liquid.

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What is a Guarantor?

Sometimes borrowing money can be difficult. Creditors might be afraid to touch us if we have no real credit history. We can appear like too much of a risk. This is where a guarantor comes into the picture. Having one of these people in our corner can greatly increase our chances of getting a loan. Of course it is not always easy to find such a useful personage; especially one that the bank will be willing to accept.

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What are Fixed Deposits?

When it comes to investing money there are a number of possible options. One possibility is a fixed deposit account. This is where you invest your money for a set period of time. The fact that you are willing to tie your money up means that you can generally expect to receive higher rewards.

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What is an Underwater Mortgage?

underwater mortgageIf you follow the newspapers you will probably have heard the term “underwater mortgage”. This has nothing to do with owning property beneath the waves but instead refers to a situation where the amount you owe on a property is more than the value of the property itself. Since the economic meltdown a few years ago there have been a lot of people who have found themselves in this unenviable situation.

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What are Financial Derivatives?

financial derivativesThe simplest way to explain a derivative would be to say that it is a financial agreement between two parties. It derives its value from a real good or type of stock. The value of these financial derivatives will be based on the future expected price for something. So in a lot of cases the person selling the derivative will agree to provide something in the future at a price that is agreed upon now. Some people will use this as a form of investment in the hope of making a lot of money in the future.

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