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Archive for the ‘money issues’ Category

Reinforce your knowledge about payday loan

28 Jun

By using this practical cognitive technique, human beings have learned about life and survived on their own even in new and unfamiliar situations. A primitive example of this knowledge transference is the lesson most of us learned at a very young age about fire. We were told not to touch it because it was hot. Fire hurts! Most of us heeded that advice. Furthermore, if we happened to get burned inadvertently, the accident did something very important for us. It reinforced our knowledge that fire is hot and it will burn and hurt if we touch it. Since we don’t enjoy pain, we created a mental map about fire and avoided touching it. Now, as adults, we make decisions about fire based on our past orientation.

The “Mental Map Matrix,” illustrates how we use mental maps. While the human decision-making process includes an incalculable number of variables, this simple model shows how we continue to create new mental maps and reinforce old ones. It starts when something happens to us or we experience a new event (box 1). The first thing we do is instantaneously scan our memory for any similar experiences (box 2). Generally at a subconscious level, we ask, “Have I had an experience like this?” (box 3). In most cases, especially as we get older and have more life experiences behind us, we’ll identify some experience that resembles the current situation. If we do, we then try to remember the outcome: “Was it successful for me?” (box 4). This is an internal value judgment. We make this judgment based on our psychology and personality at that moment in our life. Most likely we judge “success” by whether the outcome got us what we needed. If we judge the previous outcome to have been successful, we’ll duplicate the behavior (box 5) to match our mental map and will expect a similar outcome. The aftermath of the experience reinforces our mental map (box 6) as the “right” reaction to that experience.

 

A powerful loan survival technique

25 Apr

To make partnerships work, there must be a shift in orientation from past to future. A past orientation, just like past experience, is helpful to the partnership only to the extent that it can inform us about accomplishing new tasks. When learning something new, you don’t want to throw out the baby with the bathwater. History teaches valuable lessons, and it’s important to remember them. Too often, however, people cling desperately to their experience and fail to move beyond even the Form Stage of Relationship Development. They refuse to give up the old—and yet, they cannot embrace the new. This is because of a very powerful human survival technique known as knowledge transference, or what I call mental maps. Here’s how mental maps work. Whenever we engage in a new relationship, the first thing we do is scan our personal data bank—our memory—for what we already know about the other person or group. From our memory we seek out past experiences we’ve had with them or people like them. A mental scan then produces a map that helps us decide how we want to approach this new experience.

Thus we base our decision on the recollected memory of what has happened to us in the past. This knowledge transference occurs whenever we transfer an opinion about one type of person or group to another.

 

The credit and economic risks

19 Dec

A synthetic CDO is an investment in which the underlying collateral is a portfolio of CDS. The issuer does not own the underlying assets but retains the credit and economic risks. The recent CDOs make use of “unfunded” senior tranches. The super senior investor will enter into a CDS with the SPV. The super senior is typically unfunded, matching the unfunded nature of CDS. The super senior tranche provides second-loss credit protection. As in cash CDOs, the rated note and equity pieces are generally funded. Synthetic deals can have a final maturity of 5–7 years.

Example: Collateral pool No of reference entities: 100 Notional amount of CDS: Euro 5 million Total size: Euro 500 million The example details a possible tranching of a 500 million portfolio into four tranches. Losses in the portfolio up to 5 percent (Euro 25 million of losses in total) would result in a complete write-down of the equity tranche. Further losses in the portfolio in excess of 5 percent and up to 9.5 percent (losses of Euro 47.5 million in total) would then result in a write-down of principal in the mezzanine tranche. If each credit had a 50 percent recovery rate, each default in the underlying portfolio would result in a loss of Euro 2.5 million. Therefore, it would take 10 defaults to write-down the equity tranche.

 

Targeting, attracting and retaining credit

27 Oct

It was during the 1950s and 1960s that marketing first came to real prominence. In the 1970s, the focus shifted to techniques for mass marketing within an industry, highlighting techniques or reaching customers on a broad scale. In the 1980s and throughout the 1990s, the focus moved on to market segmentation, improving the way that customers in specific markets were identified and reached.

Now the focus has narrowed even further, with technology offering businesses the opportunity for mass personalisation. This is the ability to reach individual customers – targeting the right customers and then fulfilling their market needs – on a massive scale.

 

Measuring the profitability of credit

20 Oct

This will help to determine the structure, resources, direction and development of the sales effort, enabling the business to develop its activities.

To achieve this, customer analysis should highlight profit per customer, identifying the best and least profitable customers. It is also important to understand the characteristics of the most profitable customers, both tocontinue to meet their needs and to support tailored marketing campaigns that will attract the right customers.

Customer profitability can be measured by analysing two things: customer revenue and customer costs, including defection and retention costs. Some of the most important are listed in Table 12.1. Identifying the most and least profitable customers enables current and future initiatives to be targeted at the most profitable customers. It may also allow the business to find ways of reducing the costs of doing business with the least profitable customers.

 

Credit that grants satisfaction

18 Oct

The effect of these measures was monitored through customer-satisfaction surveys placed in each truck. As well as checking that customers were satisfied, the surveys also served to highlight Ryder’s renewed commitment to service, enhancing future sales prospects. Other measures helped to establish credibility with customers and improved the image that the business projected. For example, testimonials were featured in marketing literature, and each outlet was inspected monthly rather than quarterly to ensure that literature, banners and signage were appealing. This approach turned Ryder’s business round during a recession, returning the company to the number one position in its industry.

 
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