Author’s Bio: The following article is by Sophie Kinsella, a Contributing Columnist for OVLG. She has completed her graduation in Finance and is currently working with an investment firm in California. She basically focuses on OVLG’s brand reputation and prepares oak view law group reviews and press releases.

The important detail that you should know about student loan debt is that these debts cannot disappear unless you pay them off to get out of your debt problems. The increasing number of defaults on the student loans and the recent reports reflect the aforementioned realities. It has been said by the U.S. Department of Education in September that nearly 8.9% of the student borrowers have defaulted in repaying the student loan and this figure seems to have increased by 7% in the year 2010. However, this cannot put an end to your financial problems. Although most of the college students are facing serious debt problems and are looking to take the help of professional experts in this matter, yet they are swapping their credit cards due to weak financial condition in the U.S.

While talking about different Federal student loans, the U.S. government has several repayment alternatives. You may find that the monthly payment on your repayment plan is high as per your present financial condition. In such a situation, you may stretch your loan repayment period and thus, lower the monthly payments. You may also opt for graduated payment which means you will pay less at the initial stage but will pay more in future. You will find some repayment plans that depend on your monthly income. Get help of such options and make it a point to repay your student loan at the earliest possible. However, if you need to pay off a student loan that is within your means and you can afford to make huge payments, you may do so in order to come out of debts relatively fast.

You need to know that the private student loans charge variable interest rate. Although you may find that the interest rates are low while taking out a student loan, the rate would not stay the same throughout the loan term period. The private student loans have less repayment options when compared with federal loans and, as such, you can pay off your debts sooner. Try to pay the minimum amount on Federal student loans so that you can allocate more money for private student loans. You may have taken out federal student loans and you find that you cannot afford the monthly payments on all of them. In such a situation, you can leverage your three repayment options which include income contingent repayment plan, income based repayment plan and income sensitive repayment plan.

The student loan debt sums to $920 billion which leaves behinds the entire credit card debt by $120 billion. This seems to be a big headwind for the young people who are planning to bring their finances in the right track. The high education costs and the tuition fees are not allowing the students to avoid such loans. Thus, even if you take out a student loan, make sure you keep yourself educated about the details of the loan so that you may be able to take the right decision while paying off your student loan.

The main step that can help you avoid premature bankruptcy not just as a common man but also as a young entrepreneur is budgeting. Budgeting can help you manage your finances well. As a young entrepreneur, when you are trying to establish a successful business, you will have to be aware of all of the financial decisions that you are taking. A wrong step ahead can lead to financial crisis and subsequent breakdown of your business. Other than this, even if you fall deep into business debt, it would be best for you to weigh bankruptcy vs debt consolidation to avoid completely breaking down the business.

10 tips for entrepreneurs

The steps that can help the young entrepreneurs successfully sale through the financial problems without having to declare business bankruptcy are:

1. Set business goals – It is important for you to set the business goals from the beginning so that you do not end up losing focus. This is going to help you focus on the business details in such a way so that you won’t be required to waste money into something completely unnecessary.

2. Research on money and finance – Do your research on money and finance with regards to establishing a business. Simply researching at the beginning won’t be of much help. You will have to constantly go on upgrading your knowledge; because, nothing is static.

3. Budget with regards to the business – You will be required to maintain and follow a budget with regards to the business. This can help you to maintain the business expenditures at the level of the business affordability. Thus, you won’t end up incurring huge debts.

4. Avoid excessive usage of credit cards – It is better to avoid excessive usage of credit cards for the different business purposes. Even if you use the cards, you will have to be sure that you are making the on-time payments.

5. Understand the financing options – You cannot simply start a business with our own money. So, you will be required to finance it. There are various financing options, while starting a business, it is important or you to know which options are best for your business.

6. Filter the expenses carefully – It is important to filter the expenses based on the real necessities of the business. If you think that you can curtail on any of the expenditure, you should better cut down on that, this can help you save money and incur fewer debts.

7. Attend business conferences – It is better to attend different business conferences so that you can get ideas from different successful entrepreneurs.

8. Set emergency plan – It is crucial for the business to set out an emergency plan from the beginning. This is going to help save the business during a crisis.

9. Maintain good relation with other business – It is important for you to maintain good relations with other established business. They may be of some help during the crisis period.

10. Keep track of the business transactions – It is very important to keep track of the business transactions from time to time. This is going to help you maintain low debt levels with regards to your business.

So, here are the different tips that you can follow as a young entrepreneur to save the business from a pre-mature bankruptcy.

Thank you to Sophie Kinsella for the guest post.

Despite negative reviews for the Kindle Fire from Amazon, it still showed off strong sales and put an impact into the digital hemisphere.

Wednesday shares of Amazon.com Inc hit lowest levels since March, slipping 30 cents and moving from $170.25 earlier to closing at $180.21. Mid-October shares were at a record $246.71, 35% up for the year to date. The drop happened on concern that its big spending and aggressive pricing will gain well come holiday season through 2012.

After the record October shares, Amazon introduced the Kindle Fire tablet at $199 which was close to cost, said IHS iSuppli and other computer analysis firms. While negative reviews were thrown at it, analysts saw strong sales and positive digital content impact, sales-wise. Analyst RJ Hottovy expects at least 5 million 4th quarter Kindle Fire sales seeing how it sells so well but that means additional margin pressure. Since mid-November when the Fire started shipping, shares dipped more than 20% compared to eBay’s 5% dip in the same period and Nasdaq Composite Index’s 4.9%. Amazon is into digital content investing too, like movies and television shows as well as new distribution centers to back its online retail business. Hottovy wonders when the investment will pay off.

Amazon profit concern intensified after Best Buy Co reported dismal earnings this week as the two compete in consumer electronic sales. Analyst Chad Bartley said Best Buy’s online business did better, signaling how e-commerce is taking market share. The negative side is how Best Buy results show a lot of discounting this holiday, added Bartley. Recent Goldman Sachs data showed Amazon’s consumer electronics prices averaging 9-10%. This is lower than most e-commerce websites like Best Buy, Target, Costco and Wal-Mart. Analyst Heather Bellini said Amazon’s 2012 profit estimates may be too high while 2012 earnings per share was forecasted at $1.42 against an average analyst estimate of $2 per share. Present Amazon share price is based on expected climb next year. Bellini said that for the stock to materially appreciate in the near term would require the company to beat and raise on the bottom line over the next few quarters. Given the lower operating forecasts for 2012, the scenario is unlikely.

The law will allow childeren under 26 to remain covered under a parents' health insurer.

U.S. healthcare reforms under the Affordable Care Act supported and authorized by President Barack Obama in 2010 keeps young adults insured. The biggest U.S. health reform in 50 years aims to make medical insurance available to over 30 million Americans. In September, the law has allowed children through age 26 to join or remain covered under their parents’ health coverage. This announcement made on Wednesday means insurance for 2.5 million children, up from 1 million that was announced earlier this year. It is also likely the only accepted aspect of the highly debated law.

The number increased after the May and June graduation of young adults who would have lost coverage before the health reform. The age group used to represent the highest number of uninsured. Now, the Center for Disease Control and Prevention survey said only a narrow margin divides 26 to 35-year-olds. Since the September 2010 approval of the policy for young adults, coverage for 19 to 25-year olds rose from 64% to 73% in June, according to the Department of Health and Human Services. During that time, insurance rate of persons 26 to 35 years old remained at 72%. Today, 2.5 million young Americans who used to go without insurance are no longer living with that fear, said Health and Human Services Secretary Kathleen Sebelius.

The first quarter of 2011 showed 1 million more coverage for young adults, said Federal officials. The U.S. Census Bureau said that almost half a million 18 to 24-year olds received health insurance coverage in 2010. The Affordable Care Act, called “Obamacare” by some, has been assailed by some Republican presidential nomination runners and some states. They said it represents a pushy government aiming to raise taxes and trouble businesses with new directives hence they seek to abolish the legislation. The U.S. Supreme Court announced that it will take a look and study the reforms.

Companies are looking for new ideas to implement into gift cards to make them more appealing to the user, and make them want to spend more.

Receiving gift cards this holiday season will become more exciting as retailers and companies make them more appealing. Not only designs but also to make users spend the whole amount on the card. Over 80% of shoppers are seen to purchase gift cards compared to last year’s 77.3%. The National Retail Federation expects an increase from last year’s average spending of $145.61 to $155.43, and to reach $27.8 billion, the highest since 2007.

But TowerGroup estimated that at least 10% of the gift card value remains unused which amounts to about $3 billion. This prompted Del Currie and Lou Corbo to launch Moola Street card on November 6. Initially, the buyer will only need to pay 10% of the card value but can gift a card containing 10 times that value or a $100 gift card for $10. The buyer is only required to pay the full amount if the recipient uses the card within 3 months on moolastreet.com or converts the card into retailer or restaurant cards from Amazon.com, Target, Macy’s or Subway. Up to three cards may be converted. Moola CEO Del Currie said promotions haven’t started heavily yet they have received many orders and Website traffic has been good.

Recipients can buy what they want but with games, lights, music and some toys incorporated; the card is also a gift on its own. Target’s many gift card offers may be redeemed online and from its stores. The company has also offered smartphone mobile cards since 2010.  Financial and retail president Terry Scully said this year, Target’s cards include one with Lego pieces. Recipients often spend more when redeeming gift cards hence retailers offer them especially with big uses happening after Christmas and most are redeemed within a year from issuance date, added Scully.

Another offer coming from GoalMine effective December 19 is the use of gift cards for investing in funds such as mutual and FDIC-insured savings accounts. Daily, up to 10 gift cards starting at $25 may be redeemed. For cards up to $50 in value, the first redemption is entitled to an up to 150% of its value then the rest is based on card’s market value set by Plastic Jungle which offers 35% off on GCs bought online up to 92% of face value. Popular Tartget and Wal-Mart cards with winter scenes made by American painter Thomas Kinkade are offered by PlasticJungle with some of the lowest discount rates. Marketing vice president Kristin Morse said this year’s company growth was triple-digit.

With card sales potential, there were over 600 pages of cards for sale on eBay on Monday which included those from Home Depot, Best Buy, Amazon.com, Sears unit Kmart and Macy’s with different offers of face value discounts.

Some people have seen Mark to have the same drive and perfectionism as Steve Jobs.

Mark Pincus, along with his bulldog Zinga and 20 more guys, regularly played soccer at San Francisco’s Golden Gate Park for years. Now, Pincus is the CEO of online games developer Zynga Inc. whose shares in an IPO this week on the Nasdaq stock exchange were valued at $9 billion.

Pincus, described to be a control freak, retains company control even after it goes public. Special shares class allows him 37% voting power even if his equity stakes is reduced to 12%. He is quick to recognize new trends though and is passionate about expanding Zynga which gives him an edge to be among Silicon Valley’s elite. Tribe.net founder Chris Law calls Pincus as someone who plays to win and always comes up with new ideas. Popular Zynga games on Facebook include “Farmville” and “Mafia Wars”. Sales of virtual houses, poker chips and other items used in the games earn money for Zynga. Zynga’s IPO at $925 million is said to be the largest since Google Inc’s $1.7 billion in 2004 which grants Pincus C shares with voting power that is 70 times stronger than A shares. Some company insiders own B shares with a voting ratio of 7 to 1. Other companies like LinkedIn Corp’ voting ratio is 10-1 compared to Pincus’s 70-1.

Apparently, Pincus’s Support.com experience caused his ruthlessness for control. Pincus co-founded Support.com (now SupportSoft Inc that went public in 2000) but he was dismissed after a conflict with capitalists. Venture backer Bruce Golden of Accel Partners said Pincus’s departure was harmonious as Pincus wanted to pursue other entrepreneurial interests.

Pincus’s voting power and his control freak reputation made The New York Times write an article about the “data obsessive” man who, they said, tracks employees like Big Brother. Law recalls how he and Pincus argued for weeks about where to place the website’s log-in box. Pincus was so intense about it which was both draining and energizing, added Law. He said Pincus’s Zynga control desire shows his care for the company. Pincus is likened to Apple’s Steve Jobs, both obsessive but visionary. He may have earned criticisms from the venture capital community. But in a meeting with potential Zynga capitalist years ago, a partner advised the capitalist to keep mum on Pincus’s control hunger as Pincus is expected to make them a lot of money.

Pincus, whose career was not entirely technology-devoted, dismisses the autocratic regard about him. He is not as popular as Facebook’s Mark Zuckerberg, Twitter’s Biz Stone and Evan Williams or Google’s Larry Page and Sergey Bin but they all share a singular vision. He may have predicted social network’s revolution before anybody else saw it happening and invested in Napster, Facebook, Twitter and Friendster. He focused on Zynga’s games on Facebook platform, a risk questioned by rival Activision Blizzard Inc. In April 2007, “Texas HoldEm Poker” was released under Presidio Media, later renamed to Zynga after securing $10 million funds. Today, Zynga shares’ price is 9 times its whole year’s sales compared to Activision’s 3 times of 12-month sales.

Pincus said he played “Rise of the Nations”, an Internet game where kids beat him. He wished then that he could buy tools to make him win and so the Zynga idea came up. While with Tribe, Law said Pincus knew how South Korea companies made money with virtual gifts and wanted to experiment on it. Still, analysts question the business life on Facebook where almost all revenues come from. Out of over 240 million players, less than 3% purchase virtual items. From $47 million, net income was reduced to $30.7 million during the first 9 months compared to last year that Zynga invested on new games to expand internationally. On IPO presentation, Pincus has to convince investors that Zynga is capable to be Facebook-independent.

Zynga’s first phase earned criticisms as Pincus admitted to have funded the company himself to immediately get revenues and in an attempt to control his destiny. Greg Cohn, a former Yahoo Inc and Zynga said that Pincus’s aggressiveness was understandable as it was an entrepreneur’s job. It was clear how Pincus recognized an open platform’s potential, he added. In September, Forbes estimated Pincus’s net worth at $2 billion which could change after the final IPO price. Silicon Valley IPO adviser Lise Buyer said Pincus surely will call the shots going forward and will keep up or stay ahead of the competition.

The IPO will come on Thursday December 15th, 2011, the ticker symbol will be called “ZNGA”.

Americans wish to help each other out inside the borders this season.

David Moskowitz made a promise to donate 10% of his annual income to charity and has been consistently doing so for 2 years now. Recently, however, the rise of Occupy Wall Street and the foreclosure of a laid off neighbor’s home had him reconsidering. He believes he’d be missing the point if he didn’t give more to a local jobs training program. He, the Occupy movement and the rising poverty are swaying this holiday season’s donors to do the same.

Recent surveys show increased pledges at the end of 2011. However, economic issues and government cutbacks seem to have donors reassessing where to give. Respondents are prioritizing food banks and homeless shelters.  Foundation Center’s vice president Lisa Philp said statistics show many Americans living paycheck to paycheck. When human-service or basic-need organizations reach out, there’s more receptivity among donors, she added. But philanthropic adviser Susan Winer said donors now are being smart and thoughtful about where they give. The survey showed that accountability, transparency, ethics and good governance are important considerations in choosing which charities to support. Philp suggested that donors check how nonprofits operate through Charity Navigator or Guidestar, or let professional philanthropists take charge. Fidelity Charitable president Sarah Libbey said donors can try to volunteer to better understand how organizations operate. But donors have to note that they can only suggest where they want put their irrevocable donations.

Americans deny that tax deductions influence their being altruistic. Still, donors scuttle to meet IRS’s January 1 deadline for write-offs where charity normally relies on. But that may not be the case this year as debate over tax breaks to end in 2013 continues. $250,000-a-year earners might stall but then again, progress of itemized deductions may be limited by the legislative table. Tax advantage may also come from public charity-run DAFs (donor-advised funds) which may allow quick tax deductions for donors.

Fidelity Charitable saw creativity in terms of donations for the year with 6 appreciated securities account out of 10 donations. Offers of complex assets like private stocks were 5 times higher compared with 2010. Drake Zimmerman, a chartered adviser, said that by giving assets instead, long-term capital gains taxes are avoided, then there’s more charitable capital. Giving is also made easier via Twitter and Facebook, SMS and mobile device credit card payments. Center on Philanthropy at Indiana University executive director Patrick Rooney called the system a modern charities digital footprint which allows multiple platforms for donors, a way that can recruit them for the long run.

Each of Gillian and Adam Jones’s 3 daughters aged 17 to 26 were given $500 to donate to their chosen cause. Their choices were their church’s soup kitchen, a local after-school reading program and Occupy Wall Street. Adam Jones who finds it hard to see people struggling to make ends meet wanted his girls to feel they were directly going to help someone else in need.

Analysts are blaming a sluggish economy on a weak housing market and a rising amount of foreclosures.

Doubleline Capital Management portfolio manager Vincent Fiorillo said it will take at least $100 billion to put an end to litigations against banks with faulty mortgages or restrain the state attorney general from filing lawsuits. This amount is four times the $25 billion settlement amount involved in ongoing talks to settle mortgage issues. Fiorillo said the idea of big settlement allows a clean start. A member of the Association of Mortgage Investors, Fiorillo became the institutional mortgage investors’ spokesman. He has appeared several times on Capitol Hill to testify on mortgage crisis resolutions.

According to Fiorillo $100 billion would allow loan modifications for those with above home value mortgage balances. It will also allow payments to investors who lost money on securities due to dubious mortgage loans. He hopes quick action takes place before the national elections as he is doubtful that any resolution before 2013 can happen. He mentioned that the Obama administration already failed to grab what could have been a concession with mortgage investors and banks in 2009. It could have alleviated the housing market suffering and now Fiorillo fears that less people are taking action to solve the problem.

Economists and analysts point a blaming finger to a weak housing market, rising foreclosures and the large number of underwater borrowers as reasons for the sluggish forward move of the economy. Fiorillio wonders if there are ears being lent to people who can fix the issue or if there’s anyone against it. There have been defections from the foreclosure violations-centered multi-party settlement negotiations headed by Iowa Attorney General Tom Miller. New York, California and Massachusetts attorneys general have decided to hold independent inspection of large banks.  Massachusetts Attorney General Martha Coakley filed a case against 5 of the biggest mortgage lenders on suspicion of loan modifications and falsifying documents. To date, the state gained over $600 million from aggressively collecting penalties and restitution.

Lawmakers have made changes to loan regulations as a result of the crisis. Now, stricter lenders are required to take more precautionary measures before granting a loan.

Analysts are skeptical of a long term partnership between the two given their rougher past.

Clearwire Corp’s liquidity crisis has prompted an offer of $1.6 billion help over the next 4 years from Sprint Nextel Corp, the 3rd U.S. mobile provider. It sent bankruptcy-risk Clearwire shares up by 14%. Part of the deal was an extension of Sprint’s Clearwire network use and possibly an equity combination and payment of Clearwire debt interest of $237 million due December 1. The majority of Clearwire is Sprint-owned and $1 billion financing was sought by Clearwire to remain operational and go through with the network upgrade. The news made stocks rise by 13% on Wednesday and opening at 2.14 Monday morning.

Investors welcome the deal but analysts doubt the partnership’s span given the stormy past between Sprint and Clearwire and Sprint’s own plans of a network upgrade. Nomura analyst Michael McCormack said Sprint may be tossing Clearwire a “lifeline” but that’s prolonging the current debate regarding Clearwire’s strategic importance to Sprint. The deal is potentially positive said S&P’s rating agency but maintains its default-risk rating of Clearwire while waiting for changes on Clearwire’s current cash flow deficit. Moody’s on the other hand upped Clearwire’s rating from “negative” to “stable”.

Additional funding of $3 billion is sought by Sprint itself but made a $347 million equity offer commitment to Clearwire and an additional $1.28 billion as payment for wireless network usage. Clearwire adjusted its current agreement with Sprint, allowing unlimited data use which to Mizuho’s Michael Nelson was a small price to pay. He believes Clearwire will be granted the additional funding and will boost investor confidence. Clearwire CEO Erik Prusch thinks the deal is an important piece to the whole funding mix but did not explain how Clearwire intends to raise money through equity offer or vendor financing.

Wells Fargo analyst Jennifer Fritzsche said the deal addresses Sprint investors’ doubts about shares now that Sprint gained an enviable spectrum position. Doubts persist over Sprint’s long-term purpose for Clearwire. It has been developing its own swift service but admitted the need to capitalize on Clearwire’s high-demand markets service. Clearwire may be given a breather for now, but analyst Jeff Kagan asks what is next.

Analysts thought Clearwire’s plan to miss the December 1st interest payment was a negotiating scheme so Sprint would quickly take action. Investors panicked during September 7 analysts’ meeting when Sprint remarked about thoughts of deserting Clearwire. Through the deal, Clearwire gets a $926 million payment for Sprint’s unlimited wireless network usage for 2012 and 2013. Succeeding payments will be data usage-based. Clearwire will also get $350 million for Long Term Evolution, a high-speed service technology, for 2 years provided it can meet its June 2013 network targets. Up to $347 million equity funding was also pledged by Sprint if Clearwire would offer equity between $400 and $700 million to maintain Sprint’s present voting interest.

Nasdaq Clearwire shares closed at $2.03 up by 25 cents while New York Stock Exchange Sprint shares closed at $2.70, same as it did on Wednesday. Fixed income investors sent Clearwire’s debt instruments higher following the news but pressed Sprint’s debt insurance price.

American Airlines plans to refurbish aircraft which will make them more fuel-efficient while going through bankruptcy.

On Tuesday, American Airlines parent company joined those that filed for Chapter 11 bankruptcy. High fuel prices, over $800 million labor costs and competitors winning the airline’s business travelers over caused its defeat. Despite the filed bankruptcy with a cash stockpile of $4.1 billion, the company said buying new aircraft from Boeing and Airbus is still feasible. It may resurface as a tough contender by 2012’s end said Stern Agee analyst Jeff Kaufmann.

The airlines may stop non-profitable routes services and cut its presence at airports like Chicago O’Hare and San Francisco International. This could result to increased prices and give its rivals more profit-earning opportunities more so for its toughest competitor, United Continental Holdings. Airline analyst Savanthi Syth believes American plans to shrink its Caribbean and Latin American routes from its Miami hub. This could push JetBlue’s 6.3 million seats higher if American pulls back its 11.2 million seats in the region.

Despite attempts to make more money, tough competition was a hurdle. Fund manager Craig Hodges said that this could be similar to 2003 when demand was coming back and there were only 4 of them. Companies like Union Pacific traded at $30 per share after the consolidation. In 2007, Union Pacific grew 108% against S&P 500 index’s 65% within the same period.

The airlines that used to be last to refurbish aircraft said that will change. Syth said over 200 older McDonald-Douglas planes and 120 Boeing 757s may be updated. While in bankruptcy, American said it will lease 24 older planes hand and refurbish or replace current aircraft. Michael Sansoterra of RidgeWorth Large Cap Fund Analysts said it will be beneficial to suppliers of services and parts like bolts, aircraft interior plastic lining and drink carts used by flight attendants. The companies that may benefit include new or upgraded planes supplier, BE Aerospace whose stock went 5.8% higher. It shares the market with French company Zodiac. Other than BE Aerospace owned by Sansoterra’s funds, he also owns $23.7 billion Precision Castparts Corp, maker of weight-sensitive fasteners, bolts and other parts for Airbus and Boeing wide-body aircraft. Precision is 18.1% up this year pushing Sansoterra’s fund 1.2 percentage points higher than S&P 500 in the same period.

The parts are weight-sensitive, which helps make the planes decidedly more fuel-efficient. The company is up 18.1 percent this year, one reason why Sansoterra’s fund is 1.2 percentage points ahead of the S&P 500 over the same time frame. Analysts said airport-revenue municipal bonds rely on parking, concessions, landing fees and terminal rentals to earn and pay investors. Aggressive competitors are believed to easily fill the gap in airports like Chicago or Dallas should American reduce services there.

Evercore Wealth Management’s Howard Cure said investors confuse airline industry problems with airports a lot. He said the high cost and the high competitive airport industry goes up or down with tourism or fuel prices which is different from how airports operate.  Commonly, airport revenue bonds are higher by about 20 percentage points than water/sewer revenue bonds, said Cure. With rare airport bond defaults, investors are likely to earn without having that many risks, added Cure. There are beneficial tax advantages too when investors buy home state airport bonds.