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The Marketing Planning Process

Step 1. Identify your target markets

Divide your existing and potential customers into easily identifiable groups. Understand who your customers are, where they are, what they buy, why they buy, how much and when. What value do they put on your products or services? What markets are you really in?

Step 2. Identify your services/products

What is the range of products or services on offer? Is this the right mix for your target customers? Where are your products or services in relation to the Product Life Cycle? Are they in the introduction, growth, maturity or decline phase? What are the features and benefits of the products/ services you offer?

Step 3. Identify your competitors

Where are you in the market place in relation to your competitors? What are your competitors’ strengths and weaknesses? What is your brand share, market share? What are your competitors’ prices, sales strategies? What new products or services are they developing?

Step 4. Identify your competitive edge

Carry out an Image audit. Just what is the image of your business? Carry out a staff skills and performance audit – do you have the right staff with the right level of skills? Carry out a customer satisfaction audit – are you delivering what your customers want? Identify how you are going to build your competitive edge. Is this through:

-People

-Service or product excellence

-Reputation

-Image

-Price

-Or all the above.

Step 5. Carry out a SWOT Analysis

Identify the strengths and weaknesses within your organization. Say what you are going to do to build on the strengths and eliminate the weaknesses. Identify the external opportunities and threats. Now we need to look at setting the Marketing Objectives.

Setting Marketing Objectives

Most Marketing Plans run for a year at a time but it is a good idea to set, or at least have some idea of, your broad objectives in the longer term; say three to five years. A word of caution though, it is becoming increasingly difficult to plan very far ahead as the pace of change today is so fast and the introduction of new technology is daily re writing the text books on business operation and business development. Having said that, however, you still need to set objectives at least on an annual basis.

When setting your objectives it is not enough to say that you want to be the best company in town – how are you going to measure that? How do you know when you are the best? The ratings and reviews should be checked through the business firms to select the best Specialist SEO Company. The motive should be on the customers services of the sites for the traffic available on it. 

Your objectives therefore have to be specific and measurable. Whatever your objectives ensure they are realistic and achievable. I often find that when I go into companies the owners or directors have set themselves too many objectives that they can’t possibly hope to achieve. This is demotivating. So don’t be too ambitious.

DIY: Refinish Your Kitchen Cabinets

Replacing kitchen cabinets are by far one of the most expensive parts of any kitchen makeover. Before you go hiring someone to tear out the old ones though, consider your options for refinishing your current ones. Unless your current cabinets were made poorly in the first place, or severely damaged through a flood, fire, or some other catastrophe, then it is entirely possible to save your money for other projects and still end up with a set of cabinets that will look like you bought new.

Plan your New Cabinets

To begin, decide what you want your kitchen cabinets to look like. Do you have a style in mind? Do you want to paint or re-stain the cabinets? Will you be replacing the hardware? Also, consider adding such design features as stainless steel panels, blackboard paint, or otherwise altering one cabinet door as a focal point in the kitchen, several, or all. If you are good with drawing, or know someone who is, you might even want to roughly sketch out your existing kitchen layout, and draw in any features you are considering using. This is a good way for you to see what your choices might look like when put into practice. Also, it is very crucial that you are using the right tools and equipment in this DIY project. Using the right tool will help you do the work easily and more accordingly. Make sure you have DeWalt Impact Driver to easily finish your kitchen cabinets.

 

Decide on a Work Area

Be sure you will have an area with adequate ventilation for working on the cabinet doors, and enough ventilation in the kitchen itself for when you work on the actual cabinets. If it is a sunny day, head outside to do your sanding and any painting or staining. A garage with the door open wide can be a good workspace too.

Shop for Materials and Supplies

Once you have a clear idea of what you plan to do, you will need to shop for materials, including a sander, primer, paint, or stain, new hardware, and all extra supplies such as drop cloths and a few extra plastic tubs or laundry baskets to empty the contents of your cabinets into while you are refinishing them. New hardware can give your cabinets a new look all by themselves, so take your time when choosing. Be sure to plan for a few meals out too, especially if you spend large amounts of time in your kitchen cooking, and eating out is not within your normal routine.

Remove Cabinet Doors

As basic as this sounds, remove your cabinet doors from the cabinets before refinishing. Trying to work on them while they are attached to the cabinets is difficult at best, and more than likely impossible. If you have any fear of not remembering, which cabinet door goes where, mark them in some way so that you will be able to put the doors back in the order they were removed.

Remove Hardware

Even if you plan to reuse the same hardware, remove the existing hardware. By removing the hardware, you are also avoiding any problems with the finish on them being ruined by anything you use to strip the cabinet doors themselves. If you do plan to reuse them, give them a good scrubbing while you have them off.

Remove Current Finish

Strip off the current finish from both the doors and the faces of the cabinets themselves. Whether sanding or stripping, depending on the current finish, remember to use a facemask and have plenty of ventilation.

Refinish

Paint or stain your cabinet doors and the faces of the cabinets. If you are going to alter any of the cabinet doors, do so know, before you reinstall them. Let everything dry adequately between coats and after the final coat, before putting the hardware back on, or re-hanging the doors.

Replace Hardware

If you bought new hardware, or are reusing the old hardware, install it before you re-hang the doors. If the hardware is unique in some way, requiring the order they go on, to be in some specific manner, you might wish to wait until the cabinet doors are re-hung before installing. For example, if every other door handle, needs to face its preceding handle to form a shape or design.

Re-Hang

Once all the doors and cabinet faces are dry, re-hang them and enjoy your like new kitchen cabinets that cost you a small portion of what brand new cabinets would have cost.

The Japanese Ink and Wash Painting: A Painting Made with One Single Brushstroke

Holding my brush upright above the paper, I breathe deeply. A long, tense moment passes before I lunge down and drag the ink straight across the page, painting a line that slashes through much of the picture.

I have just painted a man’s shoulder.

One may be surprised to hear of such brutal expression from a region known for its people’s emotional restraint and do-or-die technical strictness in its numerous martial and creative arts. In the view of the nanga school of Japan, however, an ink and wash painting (or sumi-e) is a highly symbolic expression in which the artist’s personality is often on show as much as the subject itself.

Americans and Europeans are all too familiar, however viscerally, with the “traditional” schools of painting established in their countries concurrent with the rise of the Japanese nanga school in the 1600’s. The rule was and largely is to elevate the artist who can paint the most photorealistic picture to the status of genius, a “master” of his art. While the ability to paint a subject to the minutest detail is a remarkable one, the men and women of the nanga school might suggest that the indistinctness of the individual brush strokes understates their importance as a measure not of the work produced, but of the artist behind it.

The sumi-e painting might best be compared not to any Western school but rather to a signature. The signature’s line thickness, direction and consistency, as any graphologist will tell you, belies the character of the man who signed it. The sumi-e artist likewise portrays himself not literally but symbolically as the relative dearth of lines will testify on qualities ranging from the artistic to the very personal. To contrast with Western style, while in many American or European styles an artist might paint tens of thousands of brush strokes in a single work, and has the liberty of painting over any mistake, the sumi-e painter will paint from, say, a thousand strokes to a mere ten, and his mistakes, too, will without question be on show. Each moment necessarily becomes a meditative exercise as the artist asks himself how he can capture a shoulder, a forehead, or an eye in a single irreversible stroke.

After a few soul-searching minutes I beheld the picture before me: my first sumi-e painting. Scrutinizing it I couldn’t help but notice the overlarge skull, the sparseness of what was to be a bushy beard and an obvious naivete regarding balancing the shades of gray amongst the different parts of my subject’s face. Then again, I admired my handiwork on the elaborated shape of the nose; perhaps, I thought, my sense of imagination redeems this amateur “self portrait”. Do you want to learn about Japanese paintings? Then click www.paintingkits.net over here now at the link for information. A person can prepare self-portrait through the use of the information of the link. 

What Are The Different Health Benefits of Using Gaming Chairs In The Long Run?

Gamers, office professionals and other people who need to sit in front of their computers for long hours, know how important it is to select the right chair on which they will sit and work. A lot of people neglect this fact, but a bad sitting posture can affect your body really bad in the long run. Common problems like back pain, neck stiffness, muscle pain and reduced energy levels are easily associated with bad sitting posture. When you are continously working in front of the computer, your body tries to adjust in the most comfortable position. But, when it fails to do so, you face difficulties like these. For those of you who do not have invested in gaming chairs yet, you must do so as soon as possible. Why? Let’s talk about that today in this blog. Meanwhile, you can check some amazing gaming chairs at chairthrone and other websites.

Best Gaming Chairs Health Benefits

Make sure to read this segment really well, because here we will talk about the best health benefits that you can experience while using comfortable chairs when you are working.

Back Support 

one of the most important reason why people use gaming chairs is because they want to avoid chronic back pain. Back pain can lead to various other difficulties in the body and that is why people want to avoid it. The lack of cushioning and proper back support will always lead to excessive back pain. But, gaming chairs are made with extra soft and durable cushioning. This allows you to work in comfort and also maintain a healthy sitting posture all the time. Over time, you will see that you are not experiencing any back pain or other related problems, when you are using a gaming chair.

Neck Support

most of the office and regular working chairs are not tall enough to offer your neck with good support and quality comfort. That is why continuous adjustment of the neck and failing to find a good support, causes the neck to become stiff and painful to adjust. But, a proper gaming chair comes with neck support that allows you to rest the neck when you are working over extended periods of time. This will not lead to any strain to the spine and avoids any other disorder related to spine or neck problems.

Fatigue

a lot of people don’t know this, but sitting in a uncomfortable position brings down your energy levels and leads to fatigue. Sitting improperly or not supporting the back and neck, wears down your body really quick. You will feel weak, exhausted and not able to focus on your work. Gaming chairs have been made to address this very problem on people facing fatigue. These chairs helps to promote comfort and positive health benefits that reinforces the mind and allows you to work more effectively.

Better Blood Flow

healthy blood flow is essential when you are working for long hours. Or else your body will feel discomfort and your legs or neck will go numb after sometime. Sitting in a single posture for long hours do not allow the blood to flow continuously to different parts of the body. Lack of oxidized blood around the body leads to drop in energy levels and that is why you lose your focus and energy big time. Hence, the gaming chairs really help to promote healthy blood flow and you will find that you have a good level of energy always.

So, these are the top health benefits that one can experience when they are using a gaming chair. All these health benefits have already been experienced by a lot of people and now it is your time to invest in a good gaming chair in 2020.

Final Words

gaming chairs are the best possible accessories that can help you to work more efficiently and effectively in the long run. It helps to divert a lot of health problems and always supports your back and shoulders when working. That is the reason these chair are so much in demand and popular in the market. Do yours research and get yourself a good chair.

Buying Guide to Above Ground Swimming Pools

There are many different varieties of swimming pools a very popular swimming pool is the Above Ground Swimming Pool, it is a regular swimming pool, except it sits on top of the ground instead of being level with the ground. Having an Above Ground Swimming Pool has many great advantages such as the options you have for shapes and sizes of your swimming pool, also the different styles and colors you can choose from when installing your pool. There are also decks available for Above Ground Swimming Pools in different heights depending on the size of your pool.

Above Ground Swimming Pools also come in different varieties; Such as ‘Inflatable Above Ground or Portable Above Ground’.

Declared “The strongest above ground pool” is King George, it is built with 4″ wide interlocking sections of extra-heavy extruded aluminum and is 52″ deep.

Now while it is an Above ground swimming pool, you may also set most above ground pools in the ground.

Above ground swimming pools also come in a large variety of sizes, to make sure that each different size fulfills the very need of that specific category of people purchasing that specific size pool.

When buying any pool you should always look into also purchasing a fitted Cover for your swimming pool, this keeps out any unwanted debris that could otherwise fall into your pool. Having a fitted cover on your swimming pool is also a safety precaution you should always use when you are not home so no unwanted children or animals fall into your pool.

You will also need to look into the pump systems for your new swimming pool.

While even having a fitted cover on your pool, you need a filter and pump in your swimming pool because the water will get stale and algae will cover the walls and floor if the water is not constantly moving and being cleaned.

Another very, very important thing is in most states you absolutely must have your pool in an enclosure, such as a fenced yard, or a swimming pool dome, etc.

It is a safety precaution that the owner of the pool must abide for the safety of other people’s lives.

Before actually purchasing your Above ground swimming pool I strongly recommend that you ‘shop around’, not necessarily for “Price” issues, just as you may find better deals in quality overall, and for safety, and warranty purposes.

When purchasing a new Above ground pool it would definitely be a wise decision to purchase (if offered at the retailer) their extended warranty, it may be a little more pricey but in the long run, it could definitely save you a bundle of money, in repairs, extra parts, filters, pumps, or professional cleanings.

Make sure when you purchase your Above ground swimming pool that you have a net, or Skimmer to collect debris floating on top of the water of your swimming pool.

Skimmers can run you anywhere from $50.00 to $100.00 dollars for Above ground swimming pools. But if you decide to go the cheap manual route, any small net will do just fine.

You should also be aware that when purchasing any pool, that you need to put chemicals in the water so that you don’t get algae and the water doesn’t go stale and smell.

These chemicals can be cheap if you find them in the right places, otherwise, you are going to be spending a whole lot of money if you go to specialty stores.

They will convince you that theirs is the best and you’ve got to have it, but you can check out Wal*Mart, Target, or Fred Meyers and they’ll usually carry the same chemicals needed for the upkeep of your new Above Ground Swimming Pool. Besides all this, make sure that you pay attention to your swimwear as well. You have Jets One Pieces that you can for the trendiest and the most comfortable swimwear that are there in the market.

Bitcoin Mining 101 – Top Facts You Should Know About BTC Mining

What are Bitcoins and where do they come from? Governments of various countries decide where and when to print paper money. They also decide the procedure of its distribution. However, Bitcoins aren’t governed by any central or national government authority at all. These are virtual currencies which can’t be printed on paper but are “mined”.

BTC mining involves a process where miners deploy particular software for solving math problems. Thereby, they are issued a few numbers of Bitcoins in exchange. This is the smartest way of issuing the currency. It also creates incentive for other people to mine as well. Mining is undoubtedly an important part of Bitcoin which assures fairness and transparency while securing Bitcoin network safe and stable. There are a few facts that you need to know about Bitcoin mining. The following post might be helpful for this matter.

What is Bitcoin mining?

Bitcoin mining is an important process of adding transaction records to Bitcoin’s public ledger of past transactions. These are technically known as Blockchains. These blockchains are used by Bitcoin nodes for separating the legitimate Bitcoin transactions from endeavors to reuse coins which have been used elsewhere already.

  • Verification: Bitcoin mining is designed as resource intensive and complicated. This is made intentionally so that the number of blocks which are found by the miners everyday might remain steady. Individual blocks would be considered valid only if they have proof-of-work. Proof-of-work is verified by other Bitcoin nodes through hashcash proof-of-work.
  • Profit making: Bitcoin functions as a currency and miners operate through mining as a business process for making profit. For some, it might be a risky business since the Bitcoin prices fluctuate widely. Investment costs for mining business can be around tens of thousands of dollars. If you are able to work efficiently, then you may be able to mine for profit making. However, you need to make your homework properly in order to make any big purchases.
  • Anonymity: A major aspect of Bitcoin mining is the anonymity. Mining is an important process of obtaining Bitcoins in a completely anonymous way.
  • Combination of Three: Bitcoin is basically three things. First of all, it is a protocol or set of rules that defines how the network has to operate. Secondly, it is a software project which implements this protocol. Thirdly, it is a network of computers and devices running software which uses the protocol to produce and manage Bitcoin currency. Mining can be defined in the protocol, implemented in the software and is an essential function for managing the Bitcoin Network. Mining verifies various things such as, transactions, double spending, collection of transaction fees et cetera.

Cryptocurrencies like Bitcoin show the future. If you are looking forward to upgrade your life, count on BTC and other such digital assets. Bitcoin regained a bull run lately which has drawn more aspiring traders to Bitcoin trading. The Bitcoin Revolution is an automatic trading tool for cryptocurrency trading, including Bitcoin. This software enables manual as well as automated trading and assures predicted income for just any level of trader.

Christian Dating: Finding Your Soul Mate

Dating is an integral part of growing up. As one steps into teens, the urge to have a partner, comes naturally. Everyone dreams of a perfect mate, who has all the traits, one wants in his or her partner. Christian online dating sites are one such place, where you can find a large number of people, sharing your interests, and choose the ones you like.

Secure And Relaxed Setting

Dating sites offer protected and comfortable surroundings to meet and know about new people. There is no fear of being harmed by a stranger Here you get to know someone and then become friends. You make friends, who remain your friends, all your life. You can also hope to find your life partner here.

Endless Choice

The Christian dating sites offer a vast choice, when it comes to choosing your friend or partner. Here you can be sure of finding someone, who shares your religious beliefs as well as your tastes. You can choose your friends according to your preference of their lifestyle and profession.

Salient Features

An ideal dating site will have a few or all of the following features:

– Chat rooms, where interesting conversations take place. These chat rooms provide a perfect medium to know the other person better, without actually meeting him or her.

– On a more personal note, one can send mails to the personal email Id of the other person

– The facility of sending voice messages is also available on some of these sites.

– Online friends can share pictures by posting them in the picture gallery.

– A site with online matchmaking is ultimate.

Benefits Of Dating Online

Dating is a healthy activity, which youngsters undertake. It helps them to get to know characteristics of people of other sex. Dating gives rise to a positive exchange of ideas between two people. This also, introduces them to the realities of a real life, which lies ahead of them. A healthy relationship between two people of opposite sex, gives them the feeling of being special and being liked by somebody. This gives them confidence to do well in other areas of life.

Dating sites help you to find someone, who has common interests as yours. This is especially beneficial as compared to a regular date, where you know absolutely nothing about the person you have started dating.

Conclusion

So, if you are among the sober group of people, who like to stay away from partying and pubbing, then a Christian dating site is for you. It will guide you in such a way, that you can have the fun of dating, which is important in growing years of an individual but at the same time understand and remember your responsibilities, that come with age.

A Dating App is what the younger generation look out for when trying to search for a person they can date with and that is not always the place to look for. Given the repercussion these applications have, Christian dating sites are preferable anytime to such apps as people have paid the price of app addiction with their lives. So, in my view, Christian sites are the best.

Avoid Getting Stranded At An Airport

During bad weather conditions, the news channels seem to be chocked full of reports of stranded travelers. Travelers going out and travelers in the midst of traveling often get stuck at an airport, without notice. So, if you frequently fly, here are some tips for helping you avoid getting stranded at an airport:

Know the weather. You want to concern yourself with the weather that occurs at your beginning point, the path in which the plane usually takes, and your ending point. If the weather holds tornadoes, heavy rain, or ice, chances are that your plane will either be grounded, meaning that the plane won’t be able to take off from its destination, or the plane might be forced to land at an airport other than the one you plan to fly into.

Know the Carrier. It’s important to know how the carrier you intend to fly with operates in times of delays/cancellations. Do they have the ability to reroute to avoid bad weather? Do they bring in another plane to help catch up once the flights fall behind? Do they accommodate the domino process of lost time by cancelling all future flights for that evening? If this is the case, can you fly standby to get back home?

Know How to Fly Standby. If you fly out for a short business trip (or even a long one), and you anticipate bad weather along the way, it might be a smart move to fly standby coming back, meaning that you can fly on a flight other than the one that you are scheduled on. To do so, arrive at the airport early and present your ticket to the airline counter, letting them know which flight you want to fly standby with.

If you have an Advantage number (or other priority number), this will help you to obtain priority consideration in the standby flying process, but this still doesn’t guarantee you a seat on that flight. You just have to wait until the flight is about to board to find out whether or not a seat is available. Even so, this helps you resolve issues from bad weather interruptions and this service costs nothing extra in the way of fees.

The good news about flying standby is that this is a relatively easy process to do if you have not checked any baggage. You simply check in as a standby passenger and wait. However, it’s not quite that easy if you have already checked baggage because some of the airlines now have new rules that you must travel with your baggage. So, if you can, try to keep your baggage with you if you think that you might need to fly standby.

Know When to Fly Standby. Some weather (such as heavy rain and ice storms) poses obvious risks of flight delays/cancellations, but also watch for the small weather changes that can cause delays/cancellations. For instance, a light rain really poses no problems, right? What about the lightning that the rain can carry, though? Yes, even the smallest existence of lightning can cause some trouble.

Lightning may not cause the plane to delay/cancel once in the air, but it can cause the plane from taking off if it has not already pushed back because many airports do not allow employees outside during times of lightning. If this is the case, your flight can delay until the lightning has stopped, and this means that you are stuck wherever you are until then, whether it’s in the airport or on the plane.

While it’s true that you’ll not always be able to avoid getting stranded at an airport, these pointers can help you gauge the conditions and make getting stranded at an airport less likely. The key to this process is to arm yourself with information about the weather surrounding the entire flight, from start to finish.

On a final note, airports are going to have different facilities and work structures like for example, Seattle Washington airport is as different from Boston International as chalk from cheese so therefore it is better to learn about those airports where your flight is scheduled so that you can adjust with the atmosphere and certain inconveniences that you are likely to encounter under various circumstances.

The Various Perks Vaping

On numerous blogs, you will find varying opinions on vaping. An essay on the advantages of electronic cigarettes is available, and a press story about the adverse consequences of vaping can be seen published the very following day. If you have recently made a move towards vaping, it will prove to be a tough choice must say. In this segment, we will explore the specific advantages of Vaping, so you can quickly see how it can prove to be beneficial for you.

  1. Vaping is healthier than cigarettes

They serve approximately 36,000 physicians worldwide. You should be acknowledged with the fact that vaping is healthier than cigarettes, according to the thorough study. Since vaporization involves no flame, tar, or ashes, vaping can contribute to several benefits related to health since there are no gasses. This offers improved oral health, healthier skin, ventilation, breathability, and a stronger sense of scent or flavor.

  1.  vaping does not involve any unpleasant smell: 

The idea that smoke does not detect you and the atmosphere claims to be the main benefit of vaping. Vaping can be tasteful, but it does not smoke from rotting tobacco plants. To certain men, the sensation of steam is barely apparent. Occasionally only spice replacements may be provided. Although, as you savor a cigarette, it does not taste like this with untreated gasses from the smoking cigarettes.

  1. Nicotine Ingestion Management: 

Vaping allows you to monitor the nicotine dosage fully. It is distributed in a number of forms with a strong potency varying from tobacco-free to nicotine. You will be able to pick the dose of nicotine in the vapor if you choose to use it.  The majority of vapors begin with high rates of nicotine and remove them slowly or entirely.

  1. Steam Production Power: 

The vapor regulation has an extensive benefit over the exhalation rate. Smaller gadgets such as goblets for warmth and low fog, while the high-performance modifications adapted for cloud search. The adjustment of the belt’s performance, airflow, and form will also allow you to change the vapor level. Based on whether you want to steam, you may be simple or classy, and it will depend on your choice.

  1. Vaping offers instant pleasure

The comfort factor of vapor is strong because you can deal with your cravings easily. While leading vapes must be tinkered at first, many are prefilled and ready to be used instantly. In any case, when the vapor is primed, it is so easy to touch it that you click or draw on the computer (few have an instant pull). Although almost every Vape requires a battery and to keep on working all day, the typical Vape will help you without preservation or supply during the day.

  1. Budget-Friendly: 

No matter what your expenditure is, you will find a vapor product available in the market. During the past few years, the vape uk market has grown, and there is plenty of competition already. A number of products are available at all price levels–from single-use electronic cigarettes to advanced steam modifications and top-class e-liquids. You may even consider a vape for instant usage when you have less than 10 dollars to spend.

  1. No required experience: 

There are several other specialized items available, but many also appeal to the novice on the list. Numerous options are available that do not need previous experience. Tools such as vape pods and beginning steam kits are excellent examples. Most of the vapes are drag-and-drop, and you just have to blow a puff over it, and it becomes ready for use.

Why Do The Payments On My Mortgage Increase When The Annual Percentage Rate Increases?

From time to time I have had the opportunity to speak with mortgage customers, credit card customers and customers who were in possession of checking accounts along with other financial products. I have worked in the financial industry for a number of years and sometimes it is not easy for a customer to understand some of the changes that took place concerning their own products or services. It was easy for me to explain but the customer did not always comprehend the information that I was sharing. Periodically I would have to explain to a customer why their mortgage payment increased because the annual percentage rate increased. This is why a personal loan can be great to pay down debt and your down payment more conveniently. With the constant rise in interest rates and the downfall of the economy, you can use personal loans in order to pay off your debts and thereafter clear your personal loan accordingly.

Well, when your loan was first set up you were put on a payment schedule that would allow your mortgage to pay off in 30 years provided you make your payments on time every month. Your loan is fully amortized. In other words, when you make your payments a portion of your payment will go to interest and a portion will go to principal. Since your annual percentage rate, (APR), increased a larger portion of your payment is now going towards interest.

  • Balance $50,000
  • Payment $500
  • Interest $246
  • Principal $254
  • APR 6%

Notice with a balance of $50,000 and an APR of 6% the interest that accrues in a 30-day billing cycle is $246. If this loan continues as it is the balance will be paid off on the scheduled due date. Assume the APR increases to 7% because this is an adjustable-rate mortgage. The amount of interest that now accrues or accumulates is $287, approximately. This means more of your payment is going towards interest and less is going towards the principal balance. This account now has $213 going towards the balance. It will now take a longer period of time for this loan to be paid off because the balance is being reduced slower. To offset this, the payment needs to be increased to make sure enough money is still going towards the principal balance. An increase is needed to at least $541 because that is how much the principal payment was reduced by. ($254 -$213). (The increased payment is for this example only and may not be the exact payment amount needed to pay off the loan at the established due date).

Now sometimes you have to go over the information quite a few times before the customer understands exactly what is going on. Changes in terms and agreements can be confusing at times. If you signed a contract for one amount and one or two changes suddenly takes place you feel like you have been blindsided. At times it is just a matter of emphasizing the fact that the payment increased was needed so that the loan can still pay off on time.

If you have a customer in your office then you can actually print out a couple of amortization schedules which allows the customer to see the break down of principal and interest when the annual percentage rate is 6% versus 7%. This makes it a lot easier.