3 Golden rules to follow while taking out loans – Don’t miss any one of them

In an ideal situation, everyone would have enough funds to pay for all their needs but the reality is far different from that. Majority of us have very few funds left in our bank accounts and hence the only option for us is to borrow money from lending institutions. Considering the banks and other lenders, this yawning gap between the consumer’s income and expenses seem to be their biggest opportunity on carry on their business. In fact, the lenders are already carpet-bombing the customers with loan offers that they send them through SMSs, mails and also over phone calls.

With the changes brought about by technology, you can not only get payday loans online but all sorts of lenders are available online waiting to meet your needs. They will just take 10 seconds to disburse a loan amount to their customers through net banking. But before you opt for loans, here are few of the golden rules that you need to follow.

Golden Rule #1: Borrow only an amount which you can pay back

The foremost rule of smart borrowing is something that the older generation has been advising us since years – ‘live within your means’. Make sure you take out a loan that you can repay easily. A thumb rule that you should follow is that your car loan installments should never surpass 15% and the personal loan instalments shouldn’t account for 10% of your net income that you make in a month. The total monthly income that you make towards all the loans shouldn’t be more than 50% of the monthly income.

Golden Rule #2: The loan term should be as short as it should be

The home loan tenure that is provided by few of the major lenders is 30 years. You have to understand the calculation that the longer the tenure is, the more will be the payment towards interest rate. However, it is always better to take out loans with shorter time period so that you can pay less on interest rates. On the contrary, if you take out short term loans from online sites like PaydayMe.com, you will get high interest loans for a short span of time as they don’t have any collateral and they offer loans to people with poor credit as well.

Golden Rule #3: Ensure paying back on time

As long as repayment of dues is concerned, you should be on time while repaying debts. Whether it’s a short term loan like a payday loan or a cash advance loan or a long term loan like a car or a home loan, you should never forget to make payments on time as this will lead to accumulated interest rates which will lead to debt. Also take care of your credit card payments as they carry the highest interest rate.

Therefore, when you’re wondering about the ways in which you can take out a loan and yet stay in financial peace, make sure you follow the golden rules mentioned above.

Major Life Decisions: Know When To Invest And When To Avoid

Navigating your way through life is challenging enough, so making major financial decisions will feel daunting. However, if you use your money wisely and make sure that you’re as well-informed as possible when it comes to where to invest it; the rewards can be well worth the initial time and effort. The following are some areas to consider if you’re thinking about what to do with your money, and will help you to decide on where to invest, and more importantly, where you should avoid putting your cash. 

Education

Education is often an extremely effective way to invest in your personal growth, along with your qualifications and career development. Therefore, if you’re sat on the fence when it comes to starting a new course or taking on extra training, and you’re unsure whether to spend your money or not; you need to weigh up the potential results. If you are stuck in a job that doesn’t fulfill you on any level, because you can’t pay your bills and receive no job satisfaction or development; it’s time to start thinking about retraining. Take into account your current experience and qualifications before you pay to begin something. You don’t want to have completed a college course, only to find out that you lack in the other areas needed for a particular job role.

If you’re able to start a course or degree and have researched thoroughly into how it will lead you towards a job and career that you’re happy with; it’ll be worth both your time and investment. You will have to sacrifice things as you study; you may have to downsize in your accommodation and limit your lifestyle so that you can afford to retrain and keep up with your deadlines. You might also have to continue to work to pay your rent and bills alongside regularly visiting a college; so your life will take a major impact, and it won’t be an easy road. However, once you’ve worked out your time management and you’re out the other side and working in a job that fulfills you and pays better than your previous roles, you’ll realize how smart your decision to make a change was and how much you appreciate it.

There are some career paths that allow you to train as you work. Therefore if you’re prepared to get stuck in at the very bottom of the ladder and work your way up, your investment in your new position will pay off in the long run. Bear in mind that there are ways to save the money that you are currently earning, which will give you the freedom to take some time out to study and learn in the near future; it might just be a case of a little patience and a lot of determination to get where you want to be. If you’re willing to invest in education and training, you want a career change and improvement, but you’re a little stuck on where to begin; take a look here: http://www.careershifters.org/expert-advice/how-to-change-career-when-you-have-no-idea-what-youre-doing for some advice and tips.

Property

So, you’ve investing your time and money into getting your career to where you want it, and you’re earning a regular salary or wage; now’s the time to start thinking about building up your property and any long term real estate investments you could make. Property can either break or make you financially; so, to ensure you’ve made the right investment for a comfortable life, you’ll need to do your research and make some smart decisions. Flipping homes can be a lucrative business to invest in; however, you’ll need to know the market like the back of your hand and be able to understand the processes that are involved in a profitable sale.

If you feel that you should be relocating to a new area, or have fallen on difficult financial times; property can be your money savior. You can seek help and advice on how to sell your home for the best price, and there are companies who will buy your property from you, no matter what condition it’s in. Handing over the responsibility of resale to another party could give you the income of cash that you need as soon as possible and will take the time, stress, and strains away from doing it all yourself; making it a valuable investment.

The real estate market waits for no-one, so take the chance to buy and sell when you can; but, you must ensure that you’re making informed choices and aren’t swayed by impulse. Rash decisions and choices when it comes to property will cost you a lot in the long run; however, if you’re smart about it, you’ll have set up te beginning of a comfortable life for you and your family. For more tips and ideas on real estate investment, take a look here: http://www.huffingtonpost.com/aj-agrawal/5-basic-tips-for-investing-in-real-estate_b_9072532.html and ensure that you’re making all the right moves in the property market.

If you are considering buying your first home; take into account the location and whether the prices are likely to rise before you plan to move on, so that you know you’re money will and assets value will increase. Avoid houses that are in declining areas, or have too much work that needs doing to them, just because they’re a quick and cheap sale; you’ll regret it in the long run and will have wasted your cash. Choose a property that will allow you and your family to grow over the next few years, and that should increase in value steadily with the rest of the market, so that you can sell with ease in the future. Know when to call in the professionals to buy your house, or to renovate for resale, so that you don’t waste any time and more of your money in trying to do it all yourself. 

Transport

You might think that transportation, or more specifically your vehicle of choice, is an unusual thing to put on a list about major life investments. However, a car will lose value the second that you drive it away from the showroom; so it’s worth making extra effort to choose one wisely and ensure that it will last for the years ahead. Unless you have plenty of cash to splash on whatever you like; you need to make a list of all the factors that your mode of transport will impact.

If you commute each day, whether it’s to work or college; work out whether it would be cost-effective to run a car, or you’d be better off investing in a long term pass for public transport. Take into account the convenience factors too; think about whether you’ll be able to park your car for free, or if you’ll have to pay for a parking spot each day, and how that compares to your public transportation option. If the convenience of driving to work each day outweighs any savings you’ll make taking the bus; then a car might be the correct choice for you. However, if running a vehicle will make a major dent in your wallet each month, and you could quarter the expense by getting on the train in the morning; reconsider visiting that car showroom this weekend and keep thinking of the money you're saving by not having one.

If you do decide that a car is a wise investment; consider secondhand and fuel-efficient options that will help you to save your hard-earned money. For some tips and ideas on what to look out for when you’re buying a vehicle, take a look here so you can make a smart choice. Taking good care of your car, and maintaining it properly, will ensure that you’ll be more likely to get a decent price for it when you decide to sell and upgrade your vehicle. Regular garage visits, washing the car inside and out, and protecting it from extreme and harsh weather conditions are a great place to start when looking after your investment.

Experiences

Vacations, traveling, and seeing what the world has to offer, will enrich your life and give you an education that no institution ever could. However, you need to ensure that you have the cash in the bank to set off, and crucially, you’ll need to prepare and plan for when you return. Short trips and vacations are the perfect way to get a taster of places that you want to spend time in, and you’ll be able to return back to work and home life with ease. Take advantage of special deals and offers on traveling across the country and overseas when they pop up, and try to have a contingency in your bank account for when these discounts pop up.

If you feel that you want to spend more time traveling and exploring new environments, then much like when you saved to retrain; you’ll need to regularly put money aside to fund a future trip. You can always work abroad, as long as you’ve sorted out the correct visas and permits; however, it’s always a wise idea to have a buffer put away. You’ll need to have a life when you return, so saving while you’re away is another way to earn some extra income, and will give you time to figure things out when you’re back in the country. As long as you work hard and make smart spending choices; there’s no reason you can’t lead an enjoyable and fruitful life and be financially comfortable too.

Big Life Purchases And The Best Approaches For Handling Them

Life is made up of hundreds of little purchases that barely touch your wallet, plus the big ones that require a huge chunk of your finances. When it comes to major purchases, you should always plan carefully.

For some of the biggest purchases in life, you’ll have to turn to borrowing money. Some might require long-term saving to treat yourself. Here are some of the things that are likely to cost you a lot from year to year, and how to handle them.

House

For the majority of people, nothing will ever cost you more than buying a house. Because of this, you should never rush into it. When you start out, use property sites like Prime Location to check out different prices in different areas. When you find a few ideal homes, always ask for a viewing before making any rash decisions.

Unless you’re completely loaded, you’re going to need a mortgage to pay your home off over time. Compare mortgage loans from different banks and make sure you find the best one for your situation. You’ll also need funds for things like furniture and appliances, which can cost you into the thousands.

Buying a house should only be done when you’re in the right position to do so. In some cases, it’s better to look at alternatives like renting condos or apartments.

Cars

Buying a car is another huge expense. There are many resources online to check out prices in your area. You can also have a look around local dealerships for new and used cars. But you’ll need the funds to afford one.

Many people turn to a loan when purchasing a car. The good news is there are sites which offer loan rate comparison, so you can find one that fits your needs.

Quite often, you won’t need a huge loan, as dealerships offer financing options for you to pay month by month. This makes shorter term loans helpful when paying for your vehicle.

Education

Education is a major investment for your future, so sometimes spending more can pay itself off in the long run. Before you consider college or university, make sure you’re going for the right reasons. If you’re unsure of the degree you want to study, it might be better to hold off.

There are many loans, grants, and scholarships available to ease the financial burden of higher education. Some countries, particularly European ones, also offer free education. However, staying near home might save you more money on living costs. Top Universities can give you information on schools, course, and costs worldwide.

Smartphones

A lot of people might not consider their phone a significant purchase. However, since many people pay for monthly contracts on their phones, it can end up being expensive in the long run.

It’s important to have a smartphone with internet data for work, family, and personal usage. This is why contracts are useful, as well as letting you upgrade your phone every year when they become outdated. Make sure you compare phone plans to get the best deal.

A cheaper alternative is to get a SIM free phone with a pay-as-you-go SIM card. This is ideal if you only use your phone for texts and calls, but data will cost more.

4 Questions To Help Find The Best Real Estate Investment For You

Investing in real estate is a very popular option for investors looking to secure their financial futures. The opportunities are undoubtedly huge, but you’d be fooled into thinking it’s an easy rise to the top.

Choosing an investment opportunity requires a lot of calculated thinking. Because the right one could change your life forever. Whether you’re new to this environment or not, the importance of making the right decision cannot be emphasized enough.

Asking yourself a series of four simple questions will direct you to the right conclusion. Here’s everything you need to know.

What?

The first major issue is deciding which type of property is best for your investment needs. After all, there isn’t only one pathway to success in the real estate arena.

Buying a place with a view to a quick turnaround sale is completely different to purchasing a studio apartment built for students. Not only will the type of property influence your tactics, but it may alter the best route to finding the exact property. For example, if you’re going for a fixer-upper, you may wish to look an auction.

Either way, knowing the type of property you want to invest in will help push the process forward at a far quicker rate.

Where?

Another huge issue is geographic location. Let’s face it; this will impact the cost as well as the potential to make money. Moreover, it could alter the logistics of the entire process. Once again, this is not a decision that can be taken lightly.

Whether it’s a prestigious 400 Beach Drive Condo or a modest building, the location is one of the most important issues. After all, it’s not only going to impact the buying process. It will inevitably have a huge influence on the selling or letting aspects too.

When?

It might not feel like the most important aspect, but striking at the right time could be pivotal to gaining maximized returns. Anyone that has bought a property to live in will appreciate the differences between buying in summer and winter. This is due partly to fluctuating supply and demand. Unsurprisingly, it has an impact on investment opportunities too.

Likewise, you need to understand how the property market is performing at any given time. Meanwhile, if you’re looking at overseas investments, currency exchange rates need to be factored in too. Patience is a virtue. Strike the right deal at the right time, and you’ll be set for a far greater future.

How?

Arguably the most important issue is how you are investing. Are you taking out a mortgage? If so, how long do you plan to spread the repayments over? Or maybe you’re lucky enough to buy cash. Either way, you need to understand the financing of it properly.

Without having this knowledge, you’ll be walking in blindfolded. Interest rates need to be considered while you’ll also have to think about any renovation work that’s required. Essentially, if this is going to be a financial investment, it’s vital that you understand the finances properly.

Use those four factors to determine your decision, and you won’t go far wrong.

Get Help Finding for Your Next Loan in Ohio

When unexpected bills arrive in your mailbox, it can be a challenge to figure out how you’ll cover what you owe. For those living paycheck to paycheck, the task is even more difficult. With no nest egg set aside for repairs or other sudden financial obligations, you don’t have the money you need. If your bank account can’t handle these new responsibilities, you’ll have to look towards one of the many lenders offering financial assistance in the state of Ohio.

Exploring your options is a time intensive process if you want to get the best deal for your cash advance. Unfortunately, as your bills’ due dates loom, you might not have that time. When time is of the essence, going online to investigate your options is a practical strategy. During your online search, you may come across a Credit Service Organization (CSO) that offers to arrange a loan between you and a third party lender in Ohio. They can help you find a credible lending company when time is of the essence.

Loans arranged by a CSO are similar to most short-term, small dollar loans. Regardless of the third party lender, the CSO will organize a cash advance amounting to something between $200 and $1000, and its repayment is due by your next pay date. Typically, this falls anywhere between 8 and 45 days from the day you receive the loan. A CSO like MoneyKey – OH, Inc. will also guarantee repayment of the advance. To learn in greater detail about the rates, terms, and conditions of financial products facilitated by a CSO, check out Moneykey.com/online-single-payday-loans-ohio.php. You can see the breakdown of the charges in a simplified table, and a representative is always available to take your questions or concerns.

All of that can be done online, as most CSOs can be contacted by email and chat. Some even allow you to apply online as well, requiring very little time or information. As long as you can provide basic contact information as well as a valid bank account, source of income, and email address you can submit your application. If you qualify, you’ll know instantly, and if you’re approved you’ll receive the funds within a single business day.

No longer does finding a loan have to be a time-consuming chore. With the help of a Credit Service Organization in Ohio, you can get a small dollar loan quickly. Start your search today to find out more about your local CSO, and you’ll see how easy it is to come by the funds you need to stay on financial track.

Which Type Of Loan Is Right For Me?

So, it’s come down to buying that huge TV, or funding that holiday, but which financing option should you choose? It’s no secret that there are dozens of them, and each has its own set of benefits.

There are a couple of important things you need to know before getting a loan, and one of them is which one is right for you. So, read on as we explore a number of your financing options, and the advantages of each…

Payday loans

Those of you who are unlucky enough to get paid monthly will probably have heard of this gem. A payday loan, as the name implies, will tide you over until your next payday. As such, they tend to be smaller sums, which are easier to pay back.

That being said, interest is very, very high. If you find yourself hit by a sudden expense - broken boiler, broken car - then payday loans could help. Just make sure you can pay it back with your next paycheck!

Secured loans

Secured loans, also known as second charge loans, are a much easier way for people to secure financing. This is because how much you can borrow is largely determined by your assets, and not your credit history.

This means that if you’re already in debt, and can’t borrow again due to poor credit, this could be your way out. Bank lending policies tend to be incredibly strict, but here, if you’re a homeowner you may find it simple to borrow. As always, just make sure you repay on time!

Overdraft

Not to be used excessively, an overdraft is typically a way to borrow extremely small sums for a short period of time. Some banks charge you each day that you haven’t paid back, so you don’t want to borrow for too long.

Check with your bank account provider, and see if your overdraft has a buffer. The buffer is the amount you can overdraw without inciting any fees. It’s usually less than 50 in any given currency, so it’s useful if you find yourself short of cash at a restaurant or bar.

Student loans

Believe it or not, but students don’t have to get a student loan. They can take another form of loan if they choose, which may hand out more cash. The standard student loan is probably most ideal though, as it doesn’t have to be paid back until you earn a certain salary.

Credit card

Across the world, consumers are billions into credit card debt, but it’s not as bad as it sounds. At the end of the day, as long as you make your payments on time, you’ll be fine. Credit cards typically offer high interest rates, but some offer an interest free period.

Credit card loans are unsecured, and the interest rate will reflect that agreement. Some people take out a second loan to pay off their credit card debt, a dangerous tactic that can land you in trouble. Upfront, I wouldn’t agree to any hugely long terms - stick to 12 months or less. That way, you avoid the ramifications of any negative financial surprises, such as job loss.

Reasons You Should Invest In Real Estate Now

Not sure where to invest your money? Investing in real estate is definitely worth thinking about. It can be quite a risk, but with the way the property market is right now, those risks are quite low. There are two main ways of making money from real estate. Either buy an apartment or house to rent out, or sell at a profit. Whichever one you prefer, you will certainly reap the benefits. Still not convinced? Here are five reasons why you should invest in property now.

Become Your Own Boss

Once you buy your first piece of investment real estate, you are in complete charge. It is now your choice as to what you do with the property. If you decide to rent out the house or apartment, then you will have a monthly income to live off. You can fix the rental price, so it suits you. But it is important not to price the monthly rent too high. Take a look at other rental homes in the area to see how much real estate goes for in the neighborhood. Even if you choose to sell the property, you are still completely in charge. You can renovate and improve the home up to your desired quality to try and sell it for the best price possible.

Money In The Pot For Retirement

These days, there is no guarantee when we will be able to retire and start taking our pension. It seems like it is a much safer bet to save up for retirement. But investing in real estate is another great way to prepare yourself for retirement. There are two ways to go about this. You can sell the property as soon as it is ready and place the money you earn in a high-interest savings account so it can increase in interest. Alternatively, rent the house or apartment out and save up all the rent. Once you are ready to retire, you could sell the house for a big lump sum.

Diversify Your Portfolio

It is super important to diversify your investment portfolio. This will reduce the overall risk of investing. So if you already have money in stocks, shares, and gold, you should also consider placing some money elsewhere. How about in some real estate? Once you have money in a few different investments, it won’t matter so much if one reduces in value. You still have other opportunities to increase you money, some of which might even do better than expected.

Tax Write-Offs

There are a number of ways you can write off some of your tax by buying real estate. Rental property owners will benefit from major tax deductions. This is because you are allowed to write off the interest that accumulates on your mortgage. Legal and professional fees used to help look after houses and Apartments can also be deducted from tax.

Has this article piqued your interest in real estate investment? There is a lot more information out there to help you buy wisely. Read around the subject before you commit!

6 Top Property Investment Tips

So, you’re thinking of investing in property for the first time. Before you take the plunge, here are 6 tips that might help you succeed.

1. Understand the Local Property Market

The property market is in constant flux, so you need to monitor and decide when the right time to buy is. This means getting to know about prices in the local area. You’ll also need to look at all the options on the market. Do you want to buy an apartment? Or a semi-detached home? These are things that you should take time to consider. Visit http://www.directpropertynetwork.com.au/perth to explore even more options.

2. Be Aware of the Work Involved

There is a lot of work involved in being a landlord. This is something that a lot of people fail to realise before they invest. But ignoring these issues is never a good idea in the long-term. It’s not just about buying a property and then waiting for the rental income to come flowing forth. You have to put in the work. You’ll be expected to carry out maintenance and address any concerns that your tenants have.

3. Buy Homes with Appeal

When you’re planning to rent out the property you invest in; you need to make sure it will have some appeal. There are many ways you can ensure this. First, you need to make sure you buy in a desirable area that will appeal to the kind of tenants you ideally want to attract. You should also make sure you do any necessary work to the property. If you wouldn’t live in it yourself, you shouldn’t expect anyone else to want to.

4. Try to Move Fast

As a buy-to-let landlord, being slow and taking too long to get the property you buy on the rental market can cost you cash. For every week that your property lies empty and unused, you’ll be missing out on cash. That’s why it’s so important to move fast and get the property rented out to a suitable tenant as quickly as you can. Of course, this doesn’t mean cutting corners; you don’t want to make costly mistakes.

5. Don’t Borrow Too Much

One of the main reasons why people fail when investing in property is down to the fact that they rely on borrowing too much. If you borrow a lot, and then the market sees a downturn in fortunes, the results could be disastrous for you. You need to think carefully when finding a mortgage for a buy-to-let property. It might be more sensible to save a bit more money and then avoid mortgages altogether.

6. Screen Tenants

The final step in the process is finding the right tenants. But this isn’t as simple as you might think. There are a lot of things that can go wrong if you fail to do the right background checks on potential tenants. When you screen them, you should get references from past landlords if possible. It’s also essential to take out landlord insurance in case something goes wrong.

The honest truth about logbook loans

What is a logbook loan?

A logbook loan is a loan to an individual that is secured against the trade value of the borrower’s car. The customer borrows a sum of money and the lender holds the logbook / registration certificate of the vehicle as security. If the borrower is unable to repay the loan, the lender will then have the right to cease the vehicle and sell it to pay the debt. No court order is required as the borrower is essentially giving the ownership of the car to the lender as a condition of the loan agreement.

Borrowers usually take out logbook loans because they generally have a lower interest rate than other short-term loans, such as payday loans. Lenders will also lend up to 75% of the trade value of a car.

Benefits of logbook loans

The main benefit of a logbook loan is that an individual with a poor credit rating is able to borrow money if he or she can provide security for the loan with a vehicle. It is good business for the lenders as they can be confident that they will recover their money whatever happens, and it can be good for the borrower as it can provide them with much needed short-term lending. 

Where to get logbook loans

Searching Google will reveal many companies that offer logbook loans. Logbook loans are not a new service; they have now been around for about 10 years.

There are companies online that provide comparison services for the different loan providers, showing the minimum and maximum loan possible, the annual APR and the representative APR.

What is involved?

Acquiring a logbook loan is very straightforward. The car is valued, often by using an industry guide, such as Parker’s or Glass’ guides. The loan will usually be limited to a percentage of the lowest likely trade price. If the vehicle has any finance outstanding this will be deducted from the loan amount.

In exchange for the agreed loan the borrower hands over the V5 logbook (vehicle registration certificate) to the lender so that they can change ownership of the vehicle if the loan is not repaid as agreed. Technically the lender owns the car from the point of the agreement. So long as the borrower can repay each loan instalment, usually a weekly payment, they will continue to have full use of their car.

Most companies set some strict criteria before lending. Vehicles must be currently taxed, have a MOT test certificate and insurance. Borrowers must also be able to prove that they have a steady income and are able to repay the loan. 

Logbook loans can be risky for borrowers. If cash flow does not improve there is a serious risk of losing a car and the price for the car will be likely to only cover the capital loan amount. By the time a few instalments have been missed interest will have increased, and it will be unlikely that the borrower will see any cash back from the sale of the vehicle.

These loans are really only suitable for those who need some money for just one month. For example, a loan of £2000 will be repayable at around £2200 after one month. Over a longer period the interest rate will result in much higher payments. A loan of £1000 will generally cost around £4000 over a year. It is a very expensive way to borrow.

Currently there is a lack of regulation in the industry and many people have lost their vehicles when they thought they had in fact repaid the loan. The Money Saving Expert forum has countless cases of people borrowing money for one month, repaying in full, only to be told that they missed a payment and that bailiffs were seizing the car. The only option for the borrower is to fight the company in court, at their own cost, to recover their vehicle.

Logbook loans are a good choice if you have a reliable income and can be sure to repay the loan in full, and not miss any weekly payments. If you cannot afford to lose your car and your cash flow is unreliable, logbook loans are not an option. Sole traders that rely on their vehicle for work should never take out a logbook loan.