Personal Finance Australia News
Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.
Fri, 25 January 2008
What is bad credit?
Bad credit is when negative listings or lack of credit history on your credit report cause low credit score. This may cause you to be denied for credit or qualifying only if you pay higher interest on financing, credit cards, and home loans. This may be because of poor performance in your credit history, incorrect information, credit fraud or identity theft. Bad credit can cause you to be denied to open a checking account! The best defense is to check your credit report frequently.
Source:Bad Credit Info.com
Wed, 30 January 2008
Solving A Crisis With An Unsecured Personal Loan
If you have recently found yourself in financial trouble because of an unexpected event or problem and you aren't sure how you are going to pay the bills or get the problem taken care of you might want to consider taking out an unsecured personal loan. This is a great way to protect your assets and solve the problem sooner rather than later. This is not something that you want to do for just any reason, if you can help it, but a personal loan can really help you out in a pinch.
Personal loans come in really handy in a pinch because you don't have to wait weeks at a time for an approval process. These loans are made for those that need to pay off other debts or paying off a onetime expense that you hadn't planned for. Many people use these loans when unexpected medical bills come up or when they have to travel for a family emergency, buy a new car, or repair a vehicle.
Unsecured personal loans are preferable because you can receive the entire amount of the loan up front, you don't have limits as to what you can use and when. In addition to getting the full amount of the loan right away, if you need it, the funds that you are approved for will be paid to you by check or even by direct deposit into your checking account so they are available for immediate use. You can be approved for a personal loan in as little as a couple hours and you can receive the money in as little as 24 hours. You simply cannot beat timing like this.
Personal loans provide consumers with the ability to pay off bills and other expenses to help prevent a financial crisis, but then they continue to be affordable. Most of the time personal loans have interest rates and principal so you don't have to worry about fluctuating interest rates. In addition you will usually have monthly payments and you can usually pay more towards the principal at any time and there is typically not a pre-payment penalty. So, if you take out the loan and you are able to pay it off sooner than you thought, you won't be penalized for it.
Most banks will offer unsecured personal loans for as little as $1,000 to as much as $250,000 though these amounts may vary slightly. The term of the loan will generally be up to five years, though this may depend on the state that you live in, your credit, as well as the amount of money that you are borrowing. Fees associated with the loan will vary depending on your bank as well as where you live.
Unsecured personal loans have the ability to get you out of very sticky situations very quickly. If you have had something come up and you just cannot pay it off consider what an unsecured personal loan can do for you. In just a few days time you may be able to take care of those finances that are leaving you stressed out and tossing and turning at night.
Source; Article Dashboard
Fri, 08 February 2008
What are Business Loans ?
Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners.
What Are Business Loans?
by: John Williams
Mon, 18 February 2008
Payday Loans Can Powerful Tool For Those In Financial Need
If you are in a tough financial situation, and find yourself needing cash and your next paycheck is several days away a payday loan just might be the solution to all of your financial needs. If your think you have seen those ads for the fast cash payday loans, and you and others you know assume right away that they are scams, maybe you should think again. Sure they do charge more interest than a more traditional loan for the cash that they lend you until your next payday, but you know what, there are plenty of people who need money immediately, and have been saved by a easy, simple fast payday loans that give you cash when you need it.
Yeah, I know that I am well off now, and really want very little in my life but this was not always quite the case, just as it is not the case for millions of Americans today that work hard and live from paycheck to paycheck. There was a time when I was on the edge of absolute abject poverty with not a thing in the world. It had gotten so bad that the banks were threatening to repossess my car, which would have meant that I would not have had a vehicle to travel to and from work, and if I lost my job I would only get deeper in debt and had zero income. I needed money pretty darn bad. So, I decide to look into getting money through a payday loan advance.
By money, I mean almost a thousand dollars. It's strange to have all that cash in transferred to your bank account when your used to your balance never being over a couple of hundred dollars, and knowing that you can not spend any of it on luxury items. It is all set aside for important bills, which I paid and I was no longer worried about losing my car, or anything else for that matter. The payday loan I received saved my job, and my car.
I had suddenly gotten enough to get back on my feet again. The process of getting my payday loan was really quite simple. I filled out the forms on the Internet and gave them all of the information they requested, including my bank account number and bank routing number. Very quickly I was informed my loan was approved and the money would be in my bank account within twenty four hours, and sure enough the money was tin my account the next morning. I did not have to beg a loan officer to ignore my bad credit, or convince someone that the reason I needed to borrow the money was for a good cause. There was absolutely no embarrassment on my part or judgments from the payday loan company. I did not even have to fax the payday loan company any documents, the whole process was just easy.
Several weeks after I got my loan, I paid it off. Since I paid the loan off on time the company let me know that I could get another loan with them without any problems if I needed it. I took the up on that offer several months later; I borrowed less money this time to make sure I had enough cash for my vacation. Payday Loans can be a powerful tool to help those in financial need, if used correctly.
Source: http://powerfulpaydayloans.com/
Wed, 05 March 2008
Do you have all the right Info on Credit Card Debt?
Are you drowning in credit card debt? Many people around the world (not just Americans) are. The root cause of America’s problems with credit card debt stem from a lack of education by American consumers in how credit cards (and debt) and interest actually work. If you’re drowning quick and need info on credit card debt, this article can be thought of as something of a life preserver.
The first thing to know about credit card debt is a formula called the Rule of 72. When you put money on a credit card, there’s interest to pay. Interest is the annual percentage of the initial amount borrowed that you have to pay extra each year for the average balance on the card. In a very simple case, if you borrow $1,000, at 18% interest, and maintain an average balance of $1,000 you’ll have to pay $180 in interest during that year. The rule of 72 is how banks and credit card companies make their money. Divide 72 by the interest rate you’re being charged, and you’ll have the time frame (in years) in which your accumulated interest payments on your credit card debt will equal the amount borrowed. In the example above, 72 divided by 18 is 4, so if you float your balance around $1,000 for four years, you’ll have paid roughly $1,000 in interest.
The best way to use a credit card is to pay the balance off every month in full. Unfortunately, credit cards make it really prominent to see the minimum monthly payment which is usually a payment that covers the interest and about 25 cents to a dollar of the total amount owed. If you’ve gone overboard on credit binging, that may not be doable. However, it’s usually possible for most people to dig themselves out of the hole with some fiscal discipline. It takes planning, effort and the right info on credit card debt .
The first step: Start by sorting all your info on credit card debt in descending order of interest rates. If you can make a transfer from a higher rate card to a lower rate card, do so.
Second, figure out what your minimum payments are. Now, look at what you bring in each month, and save a month’s worth of receipts. Look at what you can trim out of your budget to pay down those debts. If, for example, you go to a coffee shop every morning, that’s an additional $5 to $7 you spend every working day. Over a 21 day working month, that’s $105 dollars. If you always eat out for lunch, that’s an extra $5 there as well. We’re not saying give up all the luxuries in your life; but try and limit your Starbucks consumption to, say, every Friday, or every payday, and make coffee at home before you leave instead – a home brewed cup of coffee costs you about a nickel, rather than $5.
Next, go through your list of credit card debts. Set each card to get a payment of at least 10% over your minimum payment each month; devote all the extra to paying off the highest rate card you’ve got. Leave your credit cards at home; if you need some electronic way to pay for things, get a debit card from your bank and have it deduct straight from your checking account. Hopefully this info on credit card debt helps with a method or two on ways to improve your credit and debt standing.
Source: http://www.beatlandscreditrepair.com/
Sat, 08 March 2008
Frugal Shopping - How to Keep the Money You Earn
Frugal shopping can make your dollar go further and will help you to live within your means. When you implement these smart shopping tips, don't think of them as deprivation; instead think of your frugal shopping strategies as a challenge to fight the marketing strategies that separate you from your money.
How often have you thought, "If only I made more money?" When money is tight, it always feels like finding more money is the solution. While you do need to make a certain amount to meet your basic needs, beyond that, it's not so much how much you make, but how you spend what you make that determines your financial well-being.
Six Smart Shopping Tips to Keep More Money in Your Wallet
When you're shopping, be friendly to store staff and ask them if there are any sales coming up soon. Why buy a sweater for $40.00 today if it's going to be on sale for $20.00 tomorrow? Be friendly, ask about sales, and the staff will let you know how to save money at their store.
No one likes unwanted emails or random telemarketing calls, but if your favorite stores have an email or a calling list ask to be put on the list so you won't miss great bargains.
Shop around. It's easy to compare prices online, so frugal comparison shopping doesn't have to mean wasting time and gas driving from store to store. The money you'll save can be well worth a little time spent comparing prices online.
When you buy items on sale, make sure you actually get the sale price. Sometimes items will be marked down on the shelves, but the sale price hasn't been entered into the cash registers yet, so you'll be charged full price when you check out.
I'm amazed at how frequently this happens, particularly, it seems, at some large department stores. You will definitely save money if you watch your bill to ensure you’re charged the correct amount.
Don't take a shopping cart if you don't need one. Why do some stores make sure you can easily grab a shopping cart when you walk in the front doors? No, it's not good customer service, it's because you're more likely to buy more if you have a cart.
Without a cart, you're limited to buying what you can carry. With a cart it's easier to pick up several other items that you did not intend to buy. Frugal shopping is easier if you avoid using a shopping cart whenever possible; you'll drastically reduce the chance that you'll make impulse purchases.
Start at the back of department stores and work forward. The more often you pass an item, and the more items you pass, the more things you are likely to buy. If you start shopping at the front of the store and work your way back, you'll have more opportunities to be lured by an impulse purchase. If, on the other hand, you walk straight to the back of the store (don't stop to look at anything) and then start your shopping, you'll be lured by fewer impulse buys.
Don't let the lure of marketing deprive you of financial well-being and the ability to meet your larger financial goals. Implementing a few simple frugal shopping strategies will help you to get the best value for your dollar and avoid impulse purchases that drain your bank account.
Source: http://www.ezine-writer.com.au
By Lisa McGrimmon
Fri, 14 March 2008
Bad Credit Loan: Financial Help For Low Scorers
The number of people with bad credit history is increasing day by day. And once you attain this tag, it becomes impossible to wash this stain off. Any request for personal loan by people with bad credit was generally declined. But now bad credit loans are designed especially to meet the requirements of people having bad credit record.
Bad credit loans are crafted specifically to help those who have credit problems like CCJs, IVA, loan non repayment, arrears or defaults etc against their name. Now, with the help of this loan, they can meet their demands like home refurbishing, paying education fees, wedding expenses, paying off debts or buying a vehicle.
Bad credit loans can be availed in two forms, secured and unsecured. For secured bad credit loan one is required to pledge an asset as collateral. The amount derived is based on the equity value of collateral. One can avail an amount ranging from $ 5000 and $ 75000 with a repayment term of 5- 25 years.
Unsecured bad credit loans are collateral free. So those who don’t want to risk their asset can opt for unsecured loan type. But the interest rate charged is slightly higher in it. Unsecured options advance the amount ranging between $ 1000 and $25000 with a repayment term of 6 months- 10 years.
Various banks and financial institution are ready to lend bad credit loans provided you produce documents of your income and bank statements. This will satisfy the lender of your repaying ability. Many lucrative deals on the loan amount are available online also. Online dealing is comparatively faster and saves a lot of time.
With the help of bad credit loans, the people with credit problems can solve their troubles and can also improve their credit score by paying off the loan in time. To maintain a healthy credit score, borrower must ensure to repay the installments regularly.
By: Tom Dikkin
Sat, 22 March 2008
Online Refinancing Option
Although the Internet is useful for handling important matters, some people are leery about obtaining a loan through online mortgage brokers. Online refinancing is becoming increasingly popular. Most mortgage websites include comprehensive information about refinancing. The objective is to lessen nervousness and increase your trust in a lender or broker. Home buyers may complete applications online and receive a quote within a few hours. Through online refinancing, homeowners receive two quotes. If refinancing by way of a mortgage broker, the broker will obtain estimated quotes from different lenders. Requesting estimated quotes from various lenders will not lower credit scores. Homeowner can browse lenders and compare rates. Next, homeowners may select a lender from the brokers list and request an official quote. Upon reviewing an applicant's credit rating, lenders send an official quote highlighting the best interest rate and closing fees.
Source: http://home-loan-rate.blogspot.com/
Thu, 27 March 2008
Online Payday Loans
Have you found yourself in some financial troubles because you didn't have the cash you needed to pay bills that were due? Don't worry, you are not alone. Almost everyone comes across financial difficulties from time to time, whether they plan well or not. Even if you think that you are the most organized person under the sun, everyone comes into times of trouble from time to time. With all the bills that you need to keep track of in your daily life, it can be hard to manage to pay all of them and have enough funds to live comfortably.
Because sometimes people come into hard financial times where they simply cannot afford to pay for all the bills that come their way, payday loans were created. Yes, you may think that payday loans are only for financially indebted people or people who are financially irresponsible, but this is not the case at all. More and more, people are resorting to payday loans to get them through the month without falling into bankruptcy.
While you may have heard of payday loans and be sort of familiar with the process, you might be quite new to the idea of online payday loans. In our society, we rely on computers and the internet so much for things that it is no surprise that people have made the process of getting payday loans into a convenient easy to get online purchase.
Get Them Today
With online payday loans, you are taking away the entire hassle that comes with getting payday loans. Without ever leaving your home or office, you can go online and sign up for a payday loan. When you get online payday loans, you are simplifying your life and allowing the very process of loans to become easier than ever. Now you know the power of payday loans.
If you have found yourself in a sticky financial situation in which you need cash but don't know how or where to get it fast, or are unsure of taking out a loan because of the stipulations that loans come with, you do not have to worry. With our help, you can learn all about the quick and easy solution of online payday loans to make the whole problem disappear. The time is now to get on track and get the money you need to save your life.
Source: http://www.payloanstoday.com/
Mon, 07 April 2008
Common Online Loans
With so many online loans available it can sometimes be confusing deciding which one is right you. Basically online loans allow the banks to come to you instead of the other way around. Online loans are a way of letting all the banks and lenders know that you are in the market for a loan. Online Loans allow you to screen the various lenders form the ease and convenience of your home using your personal computer. Many companies out there act as online loan lead generators for the different lenders. This definitely has a big advantage for you the consumer. These companies tend to match you needs and background with the right lender. Instead of you going from bank to bank, online loans virtually brings the banks to you!
You might be saying to yourself, "this sounds ridiculous! I know what type of loan I need!" Well the truth is that applying for loans online is completely different from going into the bank and applying. It is very important to read carefully what it is you are applying for. If you are someone who has horrible credit and needs only a small loan, then applying for a personal loan is not going to work. A lender will not issue an unsecured personal loan to someone with bad credit. It just doesn’t make sense for them! A payday cash advance loan would be best for a person in this situation.
That last example may sound easy for you to figure out, but if you are still reading this article then I assume it didn’t fill your needs. So you have good credit and need a loan under $15,000. Are you a home owner? If so, a home equity line of credit would be better for you then a traditional personal loan. Interest rates for HELOCs will be lower then they would for a personal online loan. If you are not a home owner and have good credit then obviously your best bet is to apply for a personal loan online.
The trickiest area for homeowners when borrowing money is deciding which type of loan to take. You really have to analyze your own situation. Are you just trying to get cash out? Can you afford to make additional payments each month? HELOC, second mortgage, or refinance, which one? Taking out a HELOC is the simplest because you will not have to pay "points" but it will also increase your monthly cash outflow. Refinancing with cash out may be a good option, but be sure to pay attention to loan specifics. If you are currently in a 30 year loan and are in your 15th year then obviously it does not make sense to refinance the entire mortgage. If this is your situation then a second mortgage or a HELOC would be right for you.
When dealing with all the online loan options available just use common sense. Read the fine print, understand the terms and conditions, and ask questions. Remember it is your money and never feel pressured into any situation!
Source:http://www.online-loans-and-credit.com
Sun, 13 April 2008
Unsecured Personal Loans
Nobody wants to face a financially difficult situation and everyone prepares for it, at least they would. Assets, which belong to people are made for help in hard times but it is not suitable to pledge these assets for any big or small needs with the lenders. So it is better to borrow money through unsecured personal loans.
This kind of loans help the borrowers in getting the finances for their needs without the obligation of pledging any asset with the lender as collateral. This way the borrowers can lend money without engaging any risk to their assets. Also, this feature makes money available through these loans to people who do not have any assets like tenants and non-homeowners as they do not possess any fixed assets to pledge with the lenders.
By means of Unsecured personal loans, the borrowers can lend money for their personal needs like educational funding, car purchase, home improvement, debt consolidation, wedding expenses etc. These needs can be fulfilled easily with the collateral free money available to the borrower.
The borrower is should repay the loan in previously set terms but short terms, as these loans are short term due to their collateral-free nature. Also, because of this the rate of interest of these loans is slightly higher than the other loans. But it becomes difficult for borrowers of all sorts to afford these loans. So they are suggested to research for good low rate deals before deciding on one deal.
Borrowers with a bad credit history can also lend these loans. Rates are also higher for them to compensate for the risk involved with the loans. So the borrowers should research for a loan deal. This research should be taken up by the borrowers through the online mode. In the online market, stiff competition exists which helps in getting lower rates.
Unsecured personal loans make it quite hassle-free for the borrowers and risk-free too that they take up money and fulfill their needs.
Source:GuarantorLoans.com
Sun, 20 April 2008
Many People Have Realized the Convenience and Benefits of Online Personal Loans
By Beth Pardue
The Internet has provided a whole new dimension to obtaining a personal loan. Before lending companies were available on the World Wide Web, people were limited with their loan options and from where they could get a loan. Now there are endless financial resources available to people, no matter what their credit situation may be. With so many sources to lenders available online, you can often find loan deals that beat out the interest rates and loan terms you can find at local banks and credit unions.
Online personal loan options have also made it easier for those who have tarnished credit to get a loan. Consumers can search the web to find numerous lenders willing to grant loans to people with bad credit. There are other financial tools available online that can even help get your credit back into shape. You can find debt counseling and credit monitoring services as well as many free tips to help with improving your credit score like the ones available at http://www.free-debt-consultation.com
Even though the Internet has made the personal loan process much more user friendly, the requirements to obtain a loan are still the same. You still must fill out a loan application and go through the approval process. However, the online approval process is usually much faster than the traditional loan approval turnaround time. With many online lenders you will know right away if you are approved or not.
As with any loan, you want to make sure that your credit history meets the requirements of the online loan offer. Even though it is fast and easy to apply for online loans, you want to try to keep your applications to a minimum. Filling out numerous loan applications in a short time span can be detrimental to your credit score.
It’s no wonder why so many people are catching on to the convenience of getting their loans online. With the large variety of personal loans available online, you may never have to take the time to drive to your bank for a loan ever again. More than likely, you can find any type of personal loan online that is available anywhere else. Mortgage loans, auto loans (new and used), refinance loans, debt consolidations and payday loans are just a few of the most common personal loans you can find on the Internet. Visit http://www.easy-approval-personal-loans.com to learn about some of your online personal loan options.
Wed, 07 May 2008
You Are Not The First To Run Out Of Cash And Will Not Be The Last
This is a tale that is just as old as time is. There are not a lot of individuals around who at some time or another has not discovered themselves in the middle of the work week with no money and are left to get to they get paid. In past times the only option was to borrow money from family or friends and we all know how well that works out sometimes. It is not always the best option to keep a friend friendly or family close.
There have always been those desperately brave risk takers who may reach the conclusion that writing a bad check to meet expenses may be the answer just that one time and then had to show up in court over it and decided that it was not a wise answer after all. This is never the right way to go.
It is a good thing that today there is a better answer that trumps either these answers by far. Payday or check advance loans are very popular recently. They can be a huge benefit for the average people that will find themselves without enough cash to get through the week because of unplanned situations or just if you run out of funds because a number of bills came due at at the same time.
It is normally fairly uncomplicated to acquire a payday loan. The largest requirements to take out a loan are a checking account in good standing and a reliable employment. Your credit record will not generally be a factor in whether or not you can be approved for a loan such as this. Your reliability with the loan business you pick to get the loan with will be essential when you want to get another loan at a later date.
Payday loan firms will have reasonable fees and need to only be an answer in cases of emergency or when it will not be hard for you to take care of the loan without putting yourself in worse financial difficulties. Depending on the firm you pick, they will probably have a way for you to postpone your loan if you are unable to meet the initial due date.
This will mean that you pay the first fee and then be given extra time to pay back the loan plus another interest charge, which is only fair because you had to delay payment on the initial contract.
Only make one loan at a time, and never borrow more than you have to. This will ensure that you are in good standing with the firm when another bad situation arises and you need a little help to get you through until your next payday.
Written by Rachel Yoshida
Sat, 17 May 2008
Bad Credit Debt Consolidation, How to Start.
For many of us, getting into debt becomes a big merry-go-round of more and more debt. The more debt you have the more debt you seem to attract to you. In many cases this is due to the fact that you can no longer plan your financial life.
For the employed amongst us, this usually results in robbing Peter to pay Paul. You borrow from this source to pay that loan, with the net result being that nothing actually improves; apart from perhaps you may be buying a few weeks grace.
For the self-employed, you lose the ability to plan the best use of your resources, with the end result being your potential future income will start to drop and you find it more and more impossible to plan your future.
There are a number of debt counselling organisations you could turn to, but be careful here. The last thing you want to do is to start spending money you havent got, and better advice would be to either go and see your bank manager, or look at what you may be able to do by yourself.
A couple of ideas you may not have thought about. Most creditors, being businessmen, do not like taking legal action against anyone, or hound them. They are mostly all negotiators, so the first line of attack is to approach every one of your creditors, and see if they will accept special terms at least for a shorter period. This is especially the case if you have fallen behind due to circumstances beyond your control a major illness, divorce, losing your job, or perhaps something more drastic like Identity Fraud, or some fraudulent actions towards you. If it is because you have been extremely reckless with your spending, you had better cut up your credit cards&
Creditors (well, responsible ones) will not force you into bankruptcy. Why? Because it would cost them money and unless you have masses of assets, they will get nothing. If they can help you back into a better income generating situation, everybody gains!
If that does not do the trick, although you can not easily reduce the actual amount you owe, there are a number of ways that can at least reduce your monthly repayments.
So, if you have read this far, you are probably very serious in getting out of your present situation. It takes guts believe me I have been there and dug my way out!
Start by speaking to reputable debt consolidation companies use your bank or people you know who can recommend one to you. Their small monthly fees are nothing to the reductions in your monthly outgoings.
Your bank may even offer a low interest consolidation loan, or may even advise you to take out a loan against your property ( but only do that with advice your home may be at risk if you can not meet repayments), but it can in many cases be a very low cost loan.
Whatever you do try to remove the reason why you got into this situation in the first place. Think about using cash as opposed to plastic it can be a great feeling to pull fresh notes form your wallet , and a great boost to your self esteem!
Source: http://www.bad-credit-tools.com
Thu, 29 May 2008
18 Personal Loan Tips For Intending Borrowers
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.
Avoid unsecured loans if possible
Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.
Be honest in loan applications
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Can't get a standard loan? There are alternatives
If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.
Check your statements for errors
There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.
Consider smaller lenders too
When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.
Do you have to take out a personal loan at all?
Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!
Do you qualify for a 'relationship discount'?
Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.
Don't just take the dealer finance
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Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.
Don't make multiple applications
Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.
Don't rely solely on comparison rates
All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.
Have the right information when applying
What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.
Personal lease applications will require:
· proof of current employment
· income details or tax returns
Business lease financing requires more detailed information and may include your:
· balance sheet
· tax returns
· cash flow projections
· business plan
Confirm with the lender what you will need before the interview.
Have you considered a credit card?
Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.
Honesty counts
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Keep accurate records
Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.
Know what interest rate applies
When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.
Look beyond the banks
Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.
Try lenders with whom you are a regular customer
Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.
Understand what's on offer
Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?
Source: http://www.money-tips.com.au/
Thu, 12 June 2008
9 Ways to Stretch Your Income
Here are some great tips for stretching every dollar.
1. Save a penny, keep a penny.
Dump your pocket change into a jar each night.
Invest it in a high-interest bearing account at the end of each month.
Woman's Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.
Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.
2. Use your computer.
You can save big money by shopping online, if you know where to look.
Do a Google search for coupon codes before you start shopping from online merchants.
You can also purchase a local coupon book for offline purchases (The Entertainment Book, for example.) I use mine all the time for groceries, oil changes, and dining out.
3. Write letters.
Whether you love the product or hate it, write the manufacturer a letter.
A company that receives a complaint is bound to make amends.
On the same token, many companies will acknowledge--and encourage--your satisfaction with coupons and discounts.
4. Shop smart.
Look at the grocery store ads before heading off to the store.
Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.
5. Ban impulse buying.
Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.
6. Watch out for "nickel and dime" expenses.
Those little snacks and coffee stops can easily add up to more than $500 per year.
7. Shop around.
Research purchases on the internet.
Before making a big online purchase, visit http://www.dealtime.com and http://www.mysimon.com.
8. Refinance your home.
Signing a few papers can save you big money on your mortgage payments. In fact, if you refinance and consolidate your debts into your home mortgage you'll find that your monthly outgoings can decrease dramatically.
It's really not as big a hassle as you might think.
Ask your friends and family for the name of a good mortgage broker
9. Examine credit card use.
If you're paying credit card debt, you're paying not just 17 percent more for your purchases than you need to, you're also missing out on the money that the sum could earn for you if you had invested it.
Try calling your credit card company and ask if there’s a way to lower your rate.
One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I'd made a long time ago.
The most important thing is to recognize that you control your finances. Empower yourself with smart spending.
Source:Susie Cortright
Sun, 22 June 2008
Getting the Most Out of Your Bank
Having a bank that meets all of your financial needs is an asset that many people don't appreciate. If you have a bank that doesn't meet all of your needs, however, it's pretty easy to tell. In order to get the most out of your bank, you may need to investigate the services that your current bank offers, or you might have to find a new bank entirely that offers the services that you need.
Here are a few tips to help you to find out which financial services your bank offers, to help you find a new bank if your current bank simply doesn't offer the services to meet your needs, and to help you take advantage of special offers and account features so as to get the most out of your banking experience.
Explore the Options Your Bank Offers
The first thing that you should do in order to make sure that you're getting the most out of your bank is to explore the features that your bank offers in order to make sure that they meet your needs. Request information from your local branch office on all of the account options and features that the bank currently offers, taking them home to read over them at your leisure and determine whether or not you're missing out on certain advanced account features.
When reading the information, be sure to look out for any common features that you've heard advertised to see if your bank currently offers them... you should also be on the lookout for any features that are offered free of charge that you currently do not use, or any that are offered free elsewhere that your bank currently charges for.
Shop Around to Find the Right Bank
Should the services that your bank offers not meet your expectations or needs, you might want to consider shopping around at other banks in the area in order to find a bank that does offer the features that you want. This doesn't mean that you should close your current accounts right away, or at all... many individuals will keep accounts at several different banks so as to keep their money separated for different purposes.
Request the account features that different banks offer, comparing them to each other and to your current bank, so as to find the local bank that best meets your current needs.
Take Advantage of Special Offers
Many banks will have special promotional offers for new customers, or have special deals that they offer current customers in appreciation of their continued business. In both cases the offer is usually a temporary one, as is the case with most promotional interest rates or special account features. However, even a temporary interest rate or promotional account feature can save you some money for the term of the promotion, so it's well worth the time to investigate the offer further to see if it's worth it.
You should be aware of services that are free during the promotional period and that are charged for later... if it's not a useful feature, you need to make sure that you cancel it before you begin to get charged for it.
Online Account Management
One useful tool that many people don't take full advantage of is online account access and account management. The online tools may allow you to check balances, transfer funds from one account to another, or even pay bills directly from your account... it largely depends upon your bank and the specific features that they offer.
Source:Bill Stone
Sun, 29 June 2008
Do You Work For Your Money Or Does Your Money Work For You ?
The Poor Cash Flow Pattern
In order to understand the three basic cash flow patterns, you must first understand the difference between an asset and a liability. When you stop working for money, an asset is something that will put money in your pocket every month. A liability is something that will take money out of your pocket every month. This idea touches on the difference between earned income and passive income.
The first basic cash flow pattern is the poor cash flow pattern. Before most people even learn about money they want things, and so they learn first to work FOR money. As their income is earned it is just as quickly spent on their list of wanted items. The poor cash flow pattern has earned income flowing in and entirely back out to expenses.
It does not matter if you have a sizeable income, because money does not make you rich or poor. Money is just a tool. It is how you are managing the tool (money) that determines whether you become rich or poor. Even with a substantial income you are still poor as long as your focus is only to earn your income and pay your expenses.
You may make $500,000 a year, you may have enough income to cover all of your expenses, but if you were to stop working for money you would quickly realize that you are poor, and the idea that you were not was just a temporary illusion.
The Middle-Class Cash Flow Pattern
Eventually people get tired of this routine and begin to gain better understanding and control over their expenses. Enough time spent focused on working for money may produce extra income in the way of a raise or a promotion.
Most people still have not spent any time to financially educate themselves, so they don't know what to do with the extra money. They don't have any ideas of their own about financing their retirement, either. The extra money is usually used to buy a newer car, a bigger house, and anything left over usually accumulates as savings. Eventually most are sold on putting the extra money into a portfolio for their retirement, usually consisting of mutual funds.
These purchases make life more comfortable, and so feel like assets...but they create an expense every month for a very long period of time. The misunderstanding is made worse by bankers who ask you to list your cars and home as assets against loans. By definition, these purchases are liabilities.
The Wealthy Cash Flow Pattern
A change of focus to passive income leads people down the path to a wealthy cash flow pattern. When you look at the pattern of the wealthy you may notice- they do not get their income from a job. Their cash flows in from assets.
Imagine spending your time figuring out a process that will automatically produce some income for you every month. Now imagine duplicating and improving upon that process until it automatically produces your ENTIRE income every month. Finally, you will stop working for money. That process is a business, and that income is a passive income.
From that point forward you will be financially independent. You will not work for money, you will have money working for you. It might take you 2, 3, or even 5 years to establish a system to that point, but once you do you can retire. Once you retire, you have all of your time to spend however you like.
This is the reason understanding the three basic cash flow patterns is so important. These patterns demonstrate the reason why you can become financially independent in just a few years working at a seven dollar an hour job. Your biggest obstacle in the beginning is controlling your expenses and changing your focus from earned income to passive income. Once you have become committed to these fundamental ideas, only persistence stands between you and great wealth.
Written by: Frank Hills
Mon, 07 July 2008
Good Debt Versus Bad Debt
Some people see debt as a curse, and other people see it as a friend. It can be used to make you miserable, or it can be used to make you wealthy beyond your wildest dreams. The trouble is, how do we know what is good and what is bad?
Well it basically boils down to this. Good debt puts money in your pocket after you have paid for the debt (interest), and bad debt takes money from your pocket on an ongoing basis. In todays society, the world has gone through an explosion in bad debt. In the United States for example, for every $1 a person earns, they spend $1.20. In Australia things are getting worse too. We spend $1.02 for every dollar earned. Back in the 1980's we would earn $1 and save 20c.
The single most influencing factor in this curse of bad debt is the credit card. It is so easy to get a credit card these days, and even school kids have them. Most people I know have several of them, and you know what, they max them all out. People get caught in this vicious circle of paying one card off with another, and still the interest bill compounds at an alarming rate.
It is not only credit cards that are doing the damage, it is also the ability to get three years interest free furniture and home appliances with no money down. This is a huge trap, and when people live beyond their means and do not have the means to pay back their debt in the given time they are hit with massive interest rates and so the cycle continues.
So that is bad debt, and I didn't even include cars, holidays and clothes, all charged up on your card! You get the picture.
Now onto good debt. Personally, I love good debt, and any wealthy person will tell you the same thing. With good debt you can purchase income producing assets that put cash in your pocket, even after the interest bill is paid. Some examples of this include property, shares and stocks, and your own business. It even includes things such as art, wine and other rare collectibles.
By leveraging other peoples money to buy such things, you are after a time able to put yourself into a fantastic financial position, and you can now begin to pay cash for those bad debt items like expensive clothes and exotic holidays.
When I was at school there was never any lessons on good and bad debt, and I'm pretty sure they still do not teach effective money and debt management. It is unfortunate that in a society such as ours, that the government does not teach this to every man, woman and child as it has a massive impact on our lives. Just look at the sub prime fallout in the States to see how people who overextended themselves are now really in trouble.
There is a way out if you are in bad debt, and there are resources out there to financially educate yourself before you do get into any trouble.
We only have ourselves to rely upon to shape our financial future, and the longer we leave it the harder it gets. Eradicate the bad debt from your lives, and begin to live without that heavy weight around your neck.
Written by:Clint Maher
Sat, 12 July 2008
Credit Secrets - What They Are Not Telling You
Credit plays a dual role in our society; sometimes a lifesaver, and at other times a murderer.
Trying to float above imminent economical disaster is a daily exercise for the majority.
So, credit companies often seem to be our rescuer, offering attractive interest rates, interest-free repayment periods and extended credit limits.
But, what they don't tell you at the time you apply for credit could be the knife edge you've been trying to avoid all along.
With the credit secrets they never disclose, you could be ignorantly heading for disaster
You can reduce your credit worthiness by applying for a lot of credit facilities: it's a fact.
The more credit you apply for, the more it's likely to reduce your credit rating.
The credit secret is that to the creditor, you're a high-risk customer who would spend easily, someone whom they can charge a higher interest rate from (it's usually clarified in the fine print that you don't tend to read).
They don't want you to pay the whole bill: yes, that's why they have a minimum monthly payment invoice.
The credit secret here is "the less you pay on a monthly basis, the more interest gets charged on your credit remainder."
In the end, you pay almost double the actual credit, because of the prolonged payments.
Low introductory interest rates don't last very long: they lure you with minimal interest rates, such as 4%, for the first six months or so. But, if you delay even one repayment, the interest goes up immediately.
The credit secret? Baiting you ... hook, line and sinker!
Additional fees are always added: if you think your credit repayments are subjected to a mere late payment fee, think again.
Credit cards are subjected to inactivity fees, overlimit fees and transaction fees, while other credit facilities carry additional fees calculated on overdrafts, failure to maintain a minimum balance and account closure.
Knowing these credit secrets will give you an advantage over the money sharks, and save you thousands of dollars over the years.
Written by:Taylor Leonard
Sun, 20 July 2008
No Credit, Or Really Bad Credit - Understanding Credit Score
This article is intended to help explain the levels of credit and what makes the credit score what it is.Very few people have perfect credit but the good news is having made some mistakes in the past does not mean there are no offers for you.
To begin, no credit, means that the person has no information pertaining to their payment history. You essentially havent established a credit reputation yet. In this scenario there are other things that can be taken into consideration to show you have the ability and willingness to pay your debts. A history of rent payments can be used to establish your credit worthiness. You may also show a cell phone or telephone bill. Utility bills are another way to show a history of paying bills on time. Simply having no file does not bar a person from obtaining home financing. There is no such thing as having no credit history. A creative consumer should be able to provide some history of payment.
If you have a credit history and have paid your bills but there are some delinquent payments you could be considered as having slow credit. Late payments affect your credit based on the severity. Credit reporting agencies base there scoring on multiples of thirty days. A late payment to a credit card might incur a late fee with the card company but might not be recorded against your score. 30 day late payments will usually show as a negative mark against your score. This type of slow payment puts a red flag up to a lender. If that payment came in after 60 days, again after 90 and again after 120 days late there would be additional negative occurances. Once an account reaches 120 days late the card company will generally forward that account to collections. It is very important to realize that delinquencies on different types of accounts are considered more severe than others. A late payment on ones mortgage is considered much more severe than one on a credit card. Installment loans fall in between revolving debt and mortgage debt. Slow credit is simply a person that has made some late payments but has been able to get those accounts current and has had relatively few delinquencies. Slow payment is different than a bad payment history and provides more options for new loan applications.
Really bad credit is a track record of payments that contains severely delinquent accounts and information such as Bankruptcy; chapter 13, chapter 11 or chapter 7. This type of file could also contain items such as foreclosure, charged off accounts, tax liens, judgments, and a history of seriously account delinquency. This type of profile can be caused by many factors. In the case where these circumstances were caused by some unavoidable circumstances, a lender may be willing to extend a mortgage despite the history. There are hundreds of credit repair companies out there. Be careful when using their services as some of these services do not use legal avenues or are will not do all that is needed to set you back on the track towards repaired credit.
Credit scores can range between 450 and 850. There are three reporting bureaus: Trans union, Experian, and Equifax, and each use a different scoring system and have a different score range. Not all creditors report to all three bureaus. A score over 700 is generally considered perfect. A score between 620 and 699 is marginal and a score below is considered what is called sub-prime.
The good news is that there are products available for files in any range even the range considered really bad! There are even foreclosure saver plans available for those who are facing the loss of their home, you have options. Everyone makes mistakes and everyone has been in a situation where that person felt things could not get any worse. There are solutions for your situation, you can begin to pull yourself out of the credit whole and begin to rebuild. The good thing is that some lenders look at more than just the score. They look at job stability, extenuating circumstances, and the willingness to pay. Lets begin to rebuild your credit now.
Source:http://www.reallybadcreditoffers.com
Sat, 26 July 2008
Who wants to be a millionaire?
Australia now has more of them than Brazil or Spain. John Collett looks at the reasons why.Thanks to the resources boom, the ranks of Australia's millionaires swelled more quickly last year than in most other developed countries...
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The number of Australians with financial assets of at least $US1 million ($1.03 million), excluding the family home but including superannuation, rose 7.1 per cent to 172,000, according to a survey by Merrill Lynch and Capgemini.
Of the 71 countries surveyed, Australia ranked 10th by number of millionaires.
Australia has more millionaires than Brazil and Spain, despite those countries having much bigger populations. As expected, the US is still the richest country and is home to 3 million of the world's 10 million millionaires.
Yet the large emerging economies of China, India, Russia and Brazil are growing their ranks of millionaires much more quickly than countries with fully developed economies. China, which had 415,000 millionaires last year, is on the verge of overtaking Britain and its 495,000 millionaires.
However, the credit crunch and turmoil in world financial markets slowed the millionaire club's growth rate last year and is expected to affect this year as well.
Wealth in Australia has been generated in several ways, says Thomas Alexy, Merrill Lynch's head of global wealth in Australia. Certainly, the booming demand for commodities has helped, he says.
"But the wealth comes in a lot of shapes and forms."
Apart from the handful of lottery winners, the prerequisite for building wealth is either being successfully self-employed, having a job with a high income or receiving an inheritance.
Yet plenty squander their income without having much to show for it.
Those with discipline who get good advice and take full advantage of Australia's quite generous tax system for borrowing to invest tend to do the best, Alexy says.
He says successful long-term investors are those who preserve their capital with good asset allocation and "never try to hit the big home run".
Andrew Inwood, the founder of brandmanagement, which conducts market research for the financial services industry, estimates that one in four of Australia's millionaires was born overseas.
"Migrants with money used to be mostly from Europe but are now from Asia and even the Middle East and Africa," Inwood says.
He says another striking feature of Australia's millionaires is that about three-quarters own their own small or medium-sized businesses and more than 70 per cent are tertiary educated.
PATIENCE
Doug Turek, the founder of high-end financial planning firm Professional Wealth, says wealth is driven by age, income and a few habits or traits - the main one being patience.
"Barring a few dotcom or iron ore millionaires, it is very hard to accumulate assets quickly; you need time for these things to build. It doesn't necessarily matter if your investment focus is strictly shares or direct property, or a mix of those things or even building a business. The key is having a disciplined focus over a long period of time."
Turek has developed an online survey (www.wealthbenchmarkets.com.au) where people enter their financial details anonymously and in return are told how their wealth compares with others of the same age and income.
More than 90 per cent of the participants in the survey are male. "Males seem to be picking up higher income roles than females," Turek says.
"There is plenty of other research to show that women, because of their time out of the workforce and inequalities in roles and promotion, are not as wealthy as men."
However, Turek says the marked predominance of wealthy males in his online survey may be partly because men are more comfortable than females in sharing their financial information, even though it is given anonymously.
"It is a male-dominated wealthy world," he says.
One of the key determinants of wealth is the family situation. "Being together and not divorced is a very strong success indicator because of the tremendous financial costs of separation over a lifetime," Turek says. "If you have been divorced, your net worth will only grow to three-quarters of those who are not."
PENNY PINCHERS
Inwood, whose company recently conducted a focus group with wealthy people, says some millionaires enjoy an extravagant lifestyle but most are modest in their spending. They tend not to spend that much on clothes and holidays, and are generally "tight" with money but will spend on quality things.
Turek says working overseas is also good for building wealth. "We have found that those that have spent time working overseas have a higher net worth than those who have not.
"You can think of professionals who have worked for a law firm in London or for an investment bank. Then there are those who have grown up in another culture and economy, and have come to Australia as a wealthy migrant."
It is not only those on particularly high incomes that have become wealthy.
Inwood uses a lower threshold for the definition of a high-net-worth individual than many other researchers. His definition is those with assets of more than $450,000 outside of their homes and superannuation. Recent research by brandmanagement shows that about half of them earn less than $100,000 a year.
They are those in their 50s and 60s, the baby boomer generation who have enjoyed rising house prices during the 1990s and 2000s and have good savings and investment habits. Home ownership has given them a springboard to borrow and invest.
Now that house prices are much higher than when the baby boomers first got onto the property ladder, it remains to be seen whether younger generations will fare as well.
SOURCE: John Collett - The Age
Mon, 28 July 2008
7 Cash Flow Steps to a Healthy Budget
The word budget can strike fear into even the strongest of people. If there is one thing very few people are ready for when they leave the safety of home for the first time it is dealing with money. There are not too many people who even know how to balance their chequebook after they open their first chequeing account. So creating a budget can be a scary proposition for anyone who isn't good at keeping track of their money.
But if we look at a budget in a different light then maybe it will be easier to live with what it is. And all it is is a cash flow plan. All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around.
Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget. Start with a piece of paper and a pencil; you can save those fancy budgeting software packages for later.
1. Write down your monthly income. If you are a salaried worker this should be easy. If your income is not that steady then add up the past three months worth of income and average it by dividing by three. This will give you a good starting point.
2. Start writing down all your monthly expenses. Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.
3. Here's the scary part for most people. Subtract the expenses from the income and see what's left. You will either have a positive cash flow or negative cash flow. Unfortunately in this day of increasing debt most people have a negative cash flow.
4. Once you have your monthly cash flow laid out in front of you you can start assigning your money to your expenses. As you make those payments throughout the month write them down to see how your spending lines up with what you have budgeted for that particular item.
5. If you have a negative cash flow then you can start looking at everything you have written down and find areas where your spending may not be in the best interest of you financial goals. As you do this you can free up money for more important financial considerations.
6. The first time you do a cash flow plan it probably won't work out quite right. It normally takes about three months to get everything working right while you figure out where your money has been going every month. Be patient with your budget and before long it will start working and you will regain control of your money.
7. Once you are comfortable with your written budget and you have better control of where your money goes and what it does then consider investing in some budget software such as Quicken. It can make your cash flow plan much easier and with the added features like retirement and tax planning it can give you a solid financial future.
By using these 7 cash flow steps you can begin your budget quickly and easily. Only by taking back control of your money can you improve your financial future for you and your family.
Written by:Andrew Bicknell
Tue, 05 August 2008
Ten Ways to Thrive in Uncertain Economic Times
Even in the worst economic environments some people will be more successful and resilient than others. Why? Because some people simply have a better psychological relationship to earning and spending money. This allows them to make the most of the opportunities around them and avoid common mistakes.
If you want to weather uncertain economic times and build a strong wealth foundation, you need to have the best relationship with money you possibly can. Here are a few tips to help you do just that!
1) Study Success, Don't Focus on Failure.
Most of us know plenty of examples of people who do not make enough, save enough, or who use money poorly.
How many examples of prosperous, successful people can you easily call to mind?
Decide what true and healthy prosperity looks like to you.
Then interview people, watch the news, and collect examples until you have a list of 50 wealthy, admirable, and inspiring people. Write this list down.
When you feel discouraged or unmotivated - read your list.
You will notice just by doing this that you see more opportunity and you are able to impress your boss or close more sales without even trying hard.
2) If In Business for Yourself, Collect "No Thanks" Responses, Don't Try to Get Clients.
In a tough economy, we often get scared and push too hard.
Often this can make it harder to get sales.
Instead, make a game of how many calls you can make, free consultations you can offer, talks you can give, articles you can publish, how many ways you can improve your product or service, etc.
Assign yourself points for each activity. Play with someone else. When you both get enough points, go do something outrageous and fun.
When you focus on the "no" not the yes you get less discouraged and stay more consistently engaged- which is particularly important when you are trying to sell in a tough market.
3) If You Work for Others, Don't Try for a Raise or a Better Job.
Instead try to figure out how you can add more value and make more money for your company.
Make it a game - how much better can you do this month than last? Document your efforts and your results.
Then you will be in a good position to ask for a raise or to present your case to a better employer.
4) Be a Language Detective.
What are you and others around you really saying about money?
Do you talk about money struggle, how money can be a pitfall or the evil ways of the rich?
Do others around you talk that way?
Listen and learn, and then change the messages you speak and hear to support your new core beliefs.
You will feel better and others will notice the change too.
5) Forgive Yourself Unconditionally for Your Money Past.
Fear and negativity from past experiences will affect the unconscious signals you send out to others as well as your own confidence and self discipline around money.
Even if you are not aware, of it a bad attitude about money could be affecting your opportunity.
To start a serious change, create a forgiveness letter to yourself and read it aloud to yourself every night for 30 nights before going to sleep.
You may also wish to talk with a coach or therapist about issues that come up as a result. This will help clear your way psychologically for new abundance.
6) Stop Making Money a Secret.
Tell someone you love about your debt or your earning goals.
When you don't talk about what you make, what you owe, or what you spend, and you are afraid to ask others about their money - you increase the shame and confusion about it.
Challenge yourself to go talk to five people about money - ask and tell all and give yourself the gift of real world perspective.
7) Stop Moving the Goal Post for Your Projects.
Some people say they want to put $5000 in savings, but when that goal has been met, it quickly becomes "not enough."
Give yourself the room to appreciate what you have done and accomplished. Make a list of 50 "successes" you have had over the last six months and keep it handy.
This will help keep you motivated and moving. If you want to move on to bigger goals, make sure you know that they are separate goals and not extensions of previous ones.
8) Make Saving Money a Reward.
Whenever you do something wise or good, take one dollar and put it in a jar.
Let this positive energy stay in there and grow for six months to a year. Then take out your savings and invest it in something that will have a long-term impact on your happiness (for example: education or training, savings, investments or anything that will have a long-term impact on your net worth.)
9) Focus On Quality Not Price.
Try not to haggle very often. In many cases, this creates an unconscious belief in lack. Either a thing is worth the energy or money is being asked or it is not. If it is, give it willingly. If it is not, look and ask for higher quality or a more satisfying purchase - not lower price!
10) JUST DO IT!
Complete those tasks you know are undone and are nagging at you and draining your mental and emotional energy. You know you need to return those library books, call your aunt, move your 401k, change your insurance, or whatever your personal procrastination items are.
The more unfinished business we have the more impulse spending we tend to engage in. Unfinished business leaves us feeling drained and keeps us in a state of inaction and denial. Both things are bad for your money. You will find that when you complete (or consciously decide to take off your list) unfinished to-do tasks, your start making better money choices.
Experiment with these ten tips and you will end up BOTH spending less and earning more. And that after all is how wealth is built in ANY economy!
Written by: Mari Geasair
Mon, 11 August 2008
Personal Loans vs credit cards: what’s your best option?
The term "personal loan" encompasses many different types of products with different names, all designed to perform a similar function.
The early days of personal loans saw little choice available to consumers, with most loans having similar interest rates, fees and conditions. These days, personal lending has evolved, giving borrowers more choice about what to spend their loan money on. Unsecured loans like holiday loans, debt consolidation loans, home improvement loans, and secured loans such as car loans all now fall under the personal loan banner.
However, in this age of 'plastic money', credit cards are beginning to compete with the personal loan for many smaller or medium-sized purchases. With competition fierce among lenders, credit card fees have been slashed, with many credit card interest rates rivalling those of the traditionally lower rates found in personal loans. Where credit card interest rates have dropped substantially over the last couple of years, personal loan interest rates have not, remaining relatively static in comparison.
But what about the larger purchases, such as a car, motorcycle or boat? Many merchants will not accept a credit card in payment for such a major expense and this is where personal loans still hold their own.
Personal loans vs Credit cards
Aside from the obvious name changes designed specifically for particular purchases, personal loans have had to make certain changes to compete in the ever-expanding personal finance market. Immediate loan approvals, redraw facilities designed to compete with credit card cash advances, flexible repayment options and lower fees all combine to make the average personal loan more attractive than it was in the past.
One problem with credit cards that’s not immediately apparent is that of 'easy money,' where funds are available constantly. This can be problematic for many consumers who have difficulty controlling their spending habits and end up much further in debt than they originally intended. Purchases made with a personal loan, on the other hand, tend to be premeditated, taking away the temptation to spend more than you can afford.
One important area where personal loans and credit cards now compete is in debt consolidation. Debt consolidation is particualry popular after the Christmas period, when spending limits have been stretched. Consumers now have a choice between a debt consolidation personal loan, or credit cards offering low interest or 0% balance transfers for up to 6 months on balances rolled into the credit card.
The future of personal loans
With a sharp rise in credit card applications in recent months, it may seem as if personal loans are in the early stages of extinction. But is this the case?
According to the credit agency Baycorp Advantage, the July to September quarter of 2006 showed a marked increase in applications for personal loans. Compared to the same period of the previous year, applications rose by a substantial 6.7%. Good news for the future of this dinosaur of financial products.
Continued evolution is essential to the personal loan if it wishes to remain in existence and compete with the flexibility offered by the credit card companies. Redraw facilities need to be developed and improved and consumers need to be offered greater flexibility in their repayment options and schedules. A lot of movement has already taken place in this direction, and if it persists, the personal loan will no doubt continue to have an important place in Australia’s personal lending market.
Source:http://www.moneybuddy.com.au
Mon, 18 August 2008
Which Credit Card is Right for You
If you're in the market for a new credit card, there is a bewildering array of cards to choose from. There are even more incentive offers, so how can you decide on the card that is best for you? Here are some of the factors to consider.
What Kind Of Payer Are You?
The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card.
If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.
Taking An Interest
Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.
Compare Credit Cards
Want to know which card is right for you? Why not check out our credit card comparison page to view a table comparing features and benefits of some of the most popular cards. Click here.
Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.
Look At The Fees
There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.
Getting Some Cash Back
Some credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending – and spend it again with a variety of high street and online retailers.
Paying attention to these items will help you to choose a credit card that will match your financial situation.
Source:Amanda Cherry
Sat, 23 August 2008
Bad Credit Personal Loans
If you need of money but you don't want a complicated financial transaction, bad credit personal loans could be the right choice for you. Bad credit personal loans are designed to provide money for applicants with little requirements, have very flexible repayment terms, and can offer needed financial relief in a crisis.
Unsecured Loan or Secured Loan
Personal loans come in two forms: Secured and unsecured personal loans. Secured loans are guaranteed by the borrower using a personal asset such as a real estate or a car as collateral for the loan. Unsecured loans on the other hand don’t require any collateral. Each choice has its own set of advantages and disadvantages that must be weighed when choosing your personal loan.
Secured loans provide less risk for the lender, because of the collateral, and this allows for lower interest rates, longer repayment periods and lower monthly payments. Unsecured personal loans, on the other hand have inherintly higher risks for the lender and thus higher interest rates, higher monthly payments and shorter repayment periods can be expected.
Credit - Know Where You Stand
Knowing your credit report before applying for a loan is crucial to know on what financial footing you stand. Required by law, credit reporting agencies are required to provide you with a free copy of your credit report at your request, this is a golden chance to find your score and plan for improvement.
Get your free copy and correct any errors or inaccuracies, act immediately and contact the credit agency. Credit Agencies are prepared to deal with these inquiries and are required by law to service your request for revisions.
Really Bad Credit Should Not Prevent You
Discovered that past financial mistakes have ruined your credit score? Don’t worry. There are many people in the same situation and the financial industry has shaped solutions for people with really bad credit, no credit, frequently delinquent credit, awful credit, or even for those who have gone through bankruptcy.
There are many lenders now offering personal loans for people with really bad credit, the rates will not be as competitive as regular personal loans but they are an excellent way to begin to rebuild your credit and can be a better source of liquidity than credit cards. The interest rate on credit cards can be 50% higher than a bad credit personal loans and the monthly payment of a personal loan is often fixed so you need not worry about market fluctuations.
Make sure you use personal loan money wisely to get yourself back on your feet. Pay off high interest outstanding debts and credit cards balances. Get back on track paying bills on time in order to immediately improve your credit score. On time payments monthly on the new personal loan will even help to improve your credit. Stay on track and you you will be able to move from bad credit to good credit and all the added benefits that good credit provides.
A word of caution. Avoid requesting loans and credit cards you cannot pay back. Keep an eye on what your monthly payment is expected to be. Learn how to make a budget and stick to it. With a little planning and you should be able to take control of your financial life and increase your wealth rather than increase your debt. Choose a personal loan offer that is manageable under your circumstances and be realistic. Debt anxiety is not fun, and the benefits of living debt free relieve enormous unneeded pressures. Be smart and make wise decisions when your financial freedom is at stake.
Source:ReallyBadCreditOffers.com
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