Car Loan Info 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.
Thu, 08 November 2007
How to choose a Car Loan-Saurabh K Jain
Life without a car is unimaginable nowadays and car loans can come in very handy when you don't have enough money to buy a car. However, if you are not careful in selecting an easy online car loan or if you take a loan with a very high interest rate, you might find it difficult to make the repayments and end up sliding down on your credit score. Such a situation can easily be avoided, if you can negotiate a good deal with a dealer or a lender.
Essential Steps For Getting A Good Car Loan
The first step towards getting car loans should be a price negotiation with the salesman of the vehicle company or a dealer, especially if you wish to buy a used vehicle. The starting point in negotiating for a car loan is obviously the amount of the loan and this can only be determined if you are able to finalize the cost of the car. You'll have to use all your negotiating skills, as the salesmen are very smart. You can be in the driver's seat in the negotiations, if you have researched the true value of the car and compared the prices offered by other dealerships for similar cars. You should be able to stand firm on your offer and be prepared to walk off, if things do not move as desired by you.
Having negotiated the cost of the car and thus having formed the basis of the amount of the loan, you can look around for a car loan. You can start by finding out the terms being offered by the dealership in respect of the interest rate, the monthly payments and the duration of the loan. With this information, you can check other sources such as, the local credit unions and the banks in your area. The best place to look for a car loan is the Internet, as there are many online lenders who are vying with each other to get your business. You can apply to various genuine online lenders and then compare their rates, but be careful of scams.
With all the offers from dealerships, credit unions, banks and online lenders, you can start comparing them and you can decide which one would suit you the most in respect of lowest interest rate and flexible terms. However, before signing for any car loan, you must read the fine print of the agreement for any adverse hidden clauses.
Whether you are looking for old car loans, new car loans or car title loans, the most appropriate place for your search is the Internet. Sitting in the comfort of your home, you can browse through various websites of the online lenders and compare their offers with ease. With so much competition in the market, it should not be difficult for you to get the best rates and terms for car loans.
Car loans are essential if you don't have enough funds to buy a car, but it's necessary to look for new car loans with the minimum interest rate and flexible terms, so that you can make the auto loans repayments conveniently. Read on to learn more about how to choose an appropriate low interest car loan.
Wed, 28 November 2007
About Car Loans
Car Loans are designed for those who wish to finance a car for personal use.
Some General Features of Car Loans
A car loan can give you immediate use of the car of your choice in exchange for regular payments over an agreed period of time.
Some general features of car loans are detailed below. Not all car loans contain these features. Before making any decisions on the features you want, make sure your financier offers them.
All the features and benefits detailed below are available through this site.
Payments can be structured to suit your requirements.
Registration costs, On Road Costs, Loan Insurance & Comprehensive Vehicle insurance may be able to be financed on the loan contract.
Terms normally range from 12 months to 5 years. You may be able to elect to make monthly or fortnightly repayments.
A deposit may not be required, however should you wish to make one you will benefit from either lower repayments or a shorter term.
Benefits to you:
If you also use your car for business purposes you may be able to claim part of the interest and depreciation charges as expenses against your taxable income.
Payments may be able to be made by direct debit from your nominated bank account.
You may build up equity in the asset.
Fixed payments for the term of the agreement allow for more accurate budgeting and protect you against interest rate fluctuations.
Source:ANZ Personal Lending
Fri, 07 December 2007
Car Loan competition delivers consumer savings
Although household debt is already at significant levels, car loan approvals are expected to continue to rise throughout the 2006/2007 year, according to a recent report from KPMG. This is despite the rise in fuel costs reported over the same period.
The profile of borrowers has also changed. These days lenders have to be willing to take on higher risk customers, offering them the same competitive products that the lower risk borrowers have always enjoyed.
Source:money buddy . com
Sun, 16 December 2007
Car Loan Tips
Avoid Unsecured Car Loans if possible - Avoid using unsecured personal loans if you can by putting up some security for your borrowings. A Secured Car Loan will get you a lower interest rate.
Be clear about Car Leasing - Car Leasing is really just another form of borrowing to Finance a car. But unlike Loan Finance - where you take ownership of the car and offer it or something else as security to the lender, lease finance sees a leasing company take ownership and give you the use of the car under contract for a specified period.
Be honest in Car Loan applications - Be honest about why you want the Car Loan. We may be able to offer you a Car Loan option that better suits your circumstances. There are an increasing variety of different types: Car Loans, Commercial Loans, Leases, Home Equity Loans, are just some of the examples.
Can't get a standard Car 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 home 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.
Don't just take the dealer finance - Don't accept car loan or car 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 car loan and more restrictive terms and conditions.
Don't make multiple car loan 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.
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.
Source: Advance Car Loans . COM
Tue, 25 December 2007
Changing Rules of Car Loans
Charles Darwin theorized that a species needs to adapt for survival. In light of the recent subprime market shake-up, consumers will have to adapt to a new environment if their hopes for a car loan are to survive.
You don't need to go to the North Pole to see the impact of changing environments. Much like a polar bear swimming through an ocean of melted icecaps, many consumers are treading water in today's shifting credit landscape.
Everything from car loans to credit cards has been affected-and with the change, your ability to access credit has been significantly curtailed. You'll need to reassess your approach to the usual sources of credit, including car loans, credit cards, and mortgages.Source: Motgage Loan.com
Thu, 03 January 2008
What is A Car Loan ?
By CreditProvider Staff Writer
When you want to receive a lower interest rate on your car loan or you want to reduce the number of payments you have left on the loan, auto refinance is one option you will have. With this type of refinancing, you will be able to pay off your current car loan by taking out another car loan that has better repayment terms. But before you pay off your old loan, make sure you will not have to pay any fees for paying back the loan early. Some lenders will add this to the loan agreement, and unfortunately, not everyone catches it before they sign the paperwork. If your original loan does not have these hidden fees, then you can pay off your first loan and enjoy all the benefits of a refinanced auto loan.
Tue, 15 January 2008
Auto Loans: Four Tips to Get You Started
Getting an auto loan is not like picking up some milk at the grocery store. You can't just run in, grab a gallon of cash, and run out. You need to take a careful look at your finances and auto options before you begin shopping for a loan.
Boy Scouts love to "be prepared" when they head out on a camping trip. They know that packing the right supplies is a critical part of surviving in the wilderness.
Before you start shopping for an auto loan, you also need to be prepared. An auto loan is a huge financial transaction, and if you make a mistake, it could stick with you for many years. Use the following four tips to ensure you survive in the world of auto financing.
1. Analyze your budget
Lenders will be happy to lend you more money than you really need. To make sure that you borrow the right amount, create a budget. Write down all your sources of income and your expenses, making sure to include any upcoming purchases or lifestyle changes that could impact your finances. By creating a thorough budget, you'll have a good sense of how much you can afford to spend on a car.
2. Research the cost
Once you've got a good idea of how much you can spend on a car, analyze how much the vehicle will cost. Be careful: The expenses include more than just the purchase price. You'll also need to consider insurance, fuel, maintenance, and interest charges. Make sure that the overall cost isn't more than 15 to 20 percent of your total budget.
3. Check your credit score
Make sure that your credit report doesn't have any mistakes before you shop for a loan. Any erroneous reports of late payments and open accounts can lower your credit score and impair your ability to get a good loan. To obtain a credit report, contact any of the three credit reporting agencies (Equifax, TransUnion, and Experian). Examine the report carefully, and immediately notify the agencies of any discrepancies.
4. Compare new vs. used
Choosing between buying a new or used car will affect the size of your loan. A new car will be much more expensive than a used one-and unfortunately, it will also depreciate much more quickly in value. However, you may decide that the additional cost is justified if you place more value on the latest safety and convenience features of a new car.
There are many other pros and cons to both sides of the new vs. used argument. Be sure to choose the option that best aligns with your budget and your tastes.
Before you get ready to start hunting for an auto loan, heed this advice: Failing to prepare means that you're preparing to fail. Use the information listed above as you carefully analyze your own financial situation. In the end, you'll emerge prepped and ready to find the right auto loan.
Source: Mortgage loan.com
Tue, 22 January 2008
The Causes Of Debt - And What To Do When Bills Go Bad
By: Brian Dolezal
If you think that debt is exclusively reserved for those with an addiction for shopping, think again. The truth is that more and more Americans are struggling with mounting credit card bills, penalty interest rates and miscellaneous fees. Although unnecessary spending habits can certainly land one in hot water with their budget, there are a number of reasons why many families are in need of debt relief.
Among the most common reasons for needed debt relief are divorce, illness, sudden job loss, a failed business venture and/or excessive spending. Today, the average American family has more than $8,000.00 in credit card debt and may be forced to deal with penalty interest rates from every creditor if they even miss one single payment. How so? When you apply for a credit card, the issuing bank retains the right to monitor your credit report as they see fit. In most cases, the cardholder's agreement will also contain a clause that grants the issuer the right to increase interest rates to a penalty rate if you either fall behind with them or with another creditor. As a cardholder, this means that you only need to miss one payment with one creditor for all of your interest rates to skyrocket.
In addition to credit card debt, there are also secured debts that consist of real estate, automobiles, furniture and certain types of electronics. This type of debt, although costly, is a necessary part of life. The problem is that credit card debt, which is not considered to be a good debt, can prevent you from being able to obtain financing for necessary items, such as a home or a car.
For homeowners who find themselves drowning in a pool of debt, a home equity loan or line of credit may seem like a quick resolution. The problem with this scenario is that unsecured credit card debt will instantly become secured with your home as collateral. When you request a home equity loan or line of credit, you can use the money to pay off credit cards. But, what happens if you later are unable to repay the home equity lender? The unfortunate truth is obvious in that your home may be in jeopardy. Additionally, most who request a home equity loan or line of credit fail to close their credit card accounts once they are paid in full, which leaves the potential for the cards to be maxed out again in the future. In a worst case scenario, you could later end up with a home equity loan or line of credit and a whole new set of credit card bills.
When finances begin to spiral out of control, it's often difficult to recover. For some, debt consolidation or debt settlement may be the answer. Either of these methods can be beneficial and will help you to regain control over your finances. Debt consolidation is a structured repayment program with lower interest and/or monthly payments, whereas debt settlement requires one lump sum payment to permanently settle a debt at a fraction of the actual balance due.
If you are in need of debt relief, the actual method that you choose will greatly depend on the type(s) of debt that you have. Unsecured debt, such as credit cards, can often be settled for as little as 20% of the total account balance. With debt negotiation, creditors are often willing to greatly reduce or even eliminate interest altogether. What this means for you is a fast track to financial freedom and a comfortable view from the driver's seat. Debt wasn't incurred overnight and it will not go away overnight but, with time and dedication, it will go away.
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
Sat, 09 February 2008
The Auto Secured Loan is Tied Directly To Title
For most people, cars are usually the second-largest asset people will purchase during their lifetime. And from most of them, they will purchase a car with an auto secured loan. The reason why it is called a secured loan is because the amount you are borrowing to purchase the vehicle is secured by the title of the vehicle. In other words, the title maybe in your name, depending on the source of your auto secured loan, but the lender is listed as the lien holder on the title. The car cannot be sold while you still owe money on the loan.
Your credit history will determine not only the interest rate that you will be charged on the loan, but also how much security the lender will require from you before you get the car. As an example, a person with a perfect credit history may be able to obtain an auto secured loan for the price of the vehicle and the lender will not to consider the depreciation on the vehicle once you have driven it off the car lot.
A person with borderline credit, not bad but not great, will usually have to provide some sort of a down payment to reduce the amount of the auto secured loan to level that will be lower than what the car will be worth as soon as it leaves the lot. Onaverage, this is typically about 70 or 80 percent of the value of the car.
Lenders Will Protect Their Financial Interests
If a borrower should default on the loan, the lender has the right, under the law, to recoup their losses. Normally, if the vehicle is taken back by the lender after a certain amount of time, which will vary from state to state, they can sell the vehicle and any difference between what you owe on the loan, plus reasonable expenses for recovering the vehicle, selling it, along with legal fees and what the vehicles sold for will be your responsibility.
It is a good idea for you to take the time to check the company with which you will be doing business with before you take out an auto secured loan. The Better Business Bureau in your area can give you information about a particular company. If this company has complaints concerning predatory lending practices, perhaps you should look to another lender. A good lender will follow the agreement they made with the customer at the start of the deal.
Unless you're paying cash for the vehicle, chances are you will be like most people, who purchase their car with an auto secured loan. Proceeding with caution is highly advised in making sure that the lending company is legitimate and ethical in its business dealings.
Written by Kerry Ng
Sat, 16 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
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
Looking For A Loan?
So you're looking for a loan and don't know where to start.
Well, the main purpose of this website is to provide you with a wealth of articles and information that will hopefully help to make you more aware of the different types of loans available, thus enabling you to decide which type of loan is best for you.
Along with loans advice, you'll also find plenty of articles relating to credit cards, mortgages and home equity advice. Just click the relevant links on the banner above to access the advice that you're looking for
The articles presented on this website aren't arranged in any particular order, and the views expressed within the articles are the opinions of the individual authors.
Source: The Ace Loan Finder Website
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/
Thu, 03 April 2008
Own dream vehicle at low cost on taking Instant Auto Loan Online
By James Taylor
Buying a car or any vehicle is a requirement and not a luxury for most of the travelers. Owning an auto however requires lot of amount and it necessitates taking a loan. It would benefit the borrower more if the loan comes at easier terms and conditions. Also the loan should be approved instantly for immediate possession of the vehicle. Instant auto loan online comes true to the expectations of the borrower. One can finance any type of auto vehicle including car when opting for instant auto loan online.
Major attraction of instant auto loan online is that it is approved instantly and the loan amount comes to the borrowers account as early as it is expected. Since the borrower applies online for the loan, no paper work or documentation is required. All an applicant is supposed to do is give necessary information like his name, employment status, source of income, loan amount and term etc. This is enough for the online lender to approve instant auto loan online.
Instant auto loan online is made available in both secured and unsecured versions considering different financial backgrounds. For secured instant auto loan online, borrower is required to offer any property as collateral with the lender. Home, jewelry, valuable papers etc may consist of the collateral. On the strength of the collateral any amount can be borrowed at lower interest rate. Though like any other secured loan, secured instant auto loan online comes at lower interest rate but because of applying online, the interest rate of different lenders can be compared and reduced rate is availed. The secured loan can be returned back in convenient repayment duration of 5 to 25 years.
Unsecured instant auto loan online is often opted for by tenant or non-homeowners who usually do not own property to take loan against. Thus they are free of any worry about loosing property for a loan.
However they should produce proof of income source, financial position and repayment capacity to ensure lender about safe return of the loan. The unsecured loan comes at a little higher interest rate and loan amount may be smaller for a shorter repayment period.Even if you are labeled bad credit, instant auto loan online is there for asking but you should assure the lender regarding your repayment capacity and intentions to pay off the loan in time.
When applying online, don’t forget to compare different loan providers for easier terms-conditions including interest rate. Online lenders do not take any fee on application processing and on offering relevant details. This lowers cost availing loan.
Instant auto loan online provides opportunity for owning your dream vehicle at lower interest rate and overall low cost. Pay off the loan in time to avoid any debt burden,
Summary: Instant auto loan online offers finance for owning dream vehicle at lower interest rate and at low cost. The loan amount comes to the borrower instantly because of its hassle free approval. The loan is offered in both secured and unsecured versions. The article makes borrowers more apprised about key features of the loan.
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
Getting That Car Loan: Simple Interest Is The Best
By Pete Lance
So here’s the situation: you are buying a car but you don’t know what type of auto loan offers you should go for. What should you go for?
The answer is simple enough: get a simple interest loan.
What is a simple interest loan anyway?
A simple interest loan is a loan where you pay interest only on the original principal of the loan.
The good thing is, 90% of all auto loan offers are simple interest loans, although there are some lenders who are pushing loans that are not. You should never agree to an auto loan that is not a simple interest loan.
The second thing you DO NOT want on your auto loan is pre-payment penalties. A loan without pre-payment penalties means that the lender will not charge you an extra fee if you pay the loan off early either through refinancing or other means.
Remember that it is always easiest, and refinancing will save you the most money, when a simple interest auto loan with no prepayment penalties is refinanced with another simple interest auto loan at a lower interest rate.
Some lenders offer auto loans that are known as pre-computer loans. Sub prime lenders will often target high risk borrowers with pre-computed auto loans, and some used car dealers might push this type of auto loan financing.
If you sign up for this type of loan, you are legally committed to paying for the full principal balance of the loan as well as the total amount of all interest that would accrue over the life of the loan.
Furthermore, if you pay off your pre-computed auto loan early, the lender often uses an outdated and expensive formula known as the rule of 78s to make you pay a large sum of money for paying off the loan early.
Never go for this type of loans.
Sometimes, the best advice is the hold out for the best offer. If the first lender does not offer a simple interest auto loan with no pre-payment penalties at a reasonable and competitive interest, find another lender who will give you a better price. There are many lenders who are eager to compete for your auto loan financing.
The world has become so small it's a buyer's market. Check out local banks, auto dealers and online resources for the best interest rates with the fewest fees. By thoroughly investigating all of your options, you will definitely get a loan that is perfect for you!
Sun, 04 May 2008
Unsecured Loan
What is an Unsecured Loan?
Unlike a secured loan, where an asset, usually a property, is offered as security should you be unable to keep up the repayments, and unsecured loan does not require any such security.
Unsecured loans are usually for smaller amounts, £5,000 to £25,000, which is lent over a relatively short period of time of around 2-10 years. This makes unsecured loans ideal for funding modest purchases such as a new car, holiday or home improvements.
Unsecured loans can sometimes also be used as part of a debt consolidation or debt management program.
Unsecured Loans to pay off debts
Often people in debt owe money on credit cards, store cards, hire purchase agreements etc. This debt is not secured against a property or other asset. An unsecured loan as a means of consolidating debts and making finances much more manageable is therefore often a very effective method of dealing with a debt problem. Rather than making numerous payments to a variety of companies, just one monthly payment is made against the unsecured loan. In many cases, this way of dealing with debt has the added advantage of a lower rate of interest than many credit or store cards.
Source: http://www.debt-consolidation-online.uk.com/loans.php
Sat, 17 May 2008
Almost a million second-hand car loans
Almost a million Britons are set to take out a second-hand car loan in the next six months, but could be paying too much.
New figures from Sainsbury's Bank show 5.5 million UK residents are planning to buy a second-hand car in the coming months, with one in six (931,600 people) taking out a car loan to fund their purchase.
However, while almost a million people are planning on taking out a car loan, they are planning to pay less for their new motor.
In the six months to the end of August Britons are planning to spend an average of £4,056 on buying a new car - considerably less than the £5,018 they were planning to spend on second-hand cars in the previous six months.
"Our findings show that people are anticipating spending less on their second-hand car purchase compared with six months ago, so it's important that they remember to haggle when negotiating any car purchase to secure the best deal," said Steven Baillie, Sainsbury's loans manager.
Source:
http://www.myfinances.co.uk/news/loans/personal-loan/
almost-million-second-hand-car-loans-$473453.htm
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/
Tue, 10 June 2008
Managing Credit Card Debt
Some people think that credit cards are free money to be used and never think of the consequences of overspending.
Now people around the country are faced with debt management to get out of debt and enjoy life again.
Learning how to consolidate debit is important and learning how to stay out of debt is even more important.
To keep your debt from spiraling even more out of control, you should consider putting your credit cards away for a while. Try to use cash to make purchases and make sure to learn how to channel your spending habits.
You’ll want to exercise restraint in spending and not buy everything you see. You should work on a monthly budget to help you control spending.
Just because something is on sale now, doesn’t mean you need to buy it now.
Don’t ever use more than 70% of your credit line at one time, that is a basic rule to be followed.
Keep your spending under control until your income goes up or you get out of debt. You don’t want to make things worse and harder on you and your family by putting yourself into even more debt.
You may also want to consider learning how to consolidate debt. This means you move the balance of all of your credit cards onto one card.
This card should have a zero interest as a starting benefit or have a lower interest rate than your other cards.
Make sure you read all the fine print before you do anything, because you don’t want to miss an important fact and end up paying more money. You can compare credit card offers here.
You can also call your credit card company and try to negotiate with them and see if they can lower the interest rate on your current card.
Another alternative is to consolidate your credit card debt with a personal loan. This should mean a single monthly repayment at a lower interest rate ... but you should also take steps to avoid accumulating new credit card debt in the future.
Try to pay off as much of your debt as you can each month. This will help you save money by lowering the interest rates you are paying each month. You also may want to consider closing out some of your credit card accounts.
Make sure you aren’t applying for more credit cards just because you have no more credit available to you on your current card. You will find yourself in even more trouble if you do that. You should also be warned that you may not even get the credit card approved if you try to do this since you are wrecking your credit rating already. Try to stay away from any kind of new loans at this time, until you are out of debt.
Remember that most things you want to buy can be bought later on and you don’t need them now. Having security and money in the bank will protect you and your family.
Source: Amanda Cherry
Mon, 16 June 2008
How Can I Get Discount Car Insurance and Cheap Auto Insurance?
As insurance rates climb nearly as fast as gas prices, more and more people are trying to find ways to save money with their vehicles. With a little investigation and a few phone calls, chances are you can find discounts that you never knew existed. So call around or search the web to find the best auto insurance discounts available from various companies. You never know what you might qualify for.
Increase Your Deductible
If you have the financial resources, it may also be wise to increase your deductible. This can often reduce your annual premium by ten to fifteen percent.
Payment Methods:
Some companies like to get the entire year’s worth of premiums in one lump sum. If you have the financial ability to do this, you may be eligible for a discount. If you can’t pay in one lump sum, see if there are discounts for electronic or direct payment from your checking account.
Additional Safety Features:
Choosing optional safety features on a new vehicle, or adding them to a used vehicle will save your money. Car alarms, anti-lock brakes, automatic seatbelts, side air bags, and any anti-theft devices may be beneficial.
Students and Schooling:
Nearly every insurance company offers the good student discount, which is available to full-time students that are averaging at least a B in school. There are also some companies that will give you benefits for continuing education, or taking defensive driving courses.
Infrequent Driver:
Logic says that the less time you spend behind a wheel, the less likely you are to have an accident. So, if you carpool, take public transportation, or ride your bicycle to work, check into the possibility of these discounts. Some companies will check your odometer yearly, and if you stay below a certain amount of miles, like 6,000, you could get a discount.
Have Good Credit
Surprisingly, a good credit history will also translate into lower insurance premiums. Studies have shown a correlation between credit history and driving records. Those with bad credit are considered to be less conscientious or less stable, and are therefore classified as higher risk drivers. People with stellar credit histories can reap the rewards of a lower insurance premium.
Housing and Garages:
The location where you live will also have a slight effect on your premium. For example, those who live in rural areas benefit from low crime rates and mild traffic and therefore cheaper premiums. If you live in the city try to lease garage space. This will lower your rates because your car will have less exposure to the elements…both natural and criminal.
Multi Policy Discount:
Once you have settled with a company that has favorable discounts, you might as well insure all your vehicles with them. Plus, look into moving your homeowners insurance to the company as well. Nearly every company offers multi-policy and multi-vehicle discounts.
Drive Carefully:
As technology and culture changes, there are new discounts and new charges offered all the time. Keep up to date on current trends, and research your policy each and every year. But perhaps the best discount is to always drive carefully. A clean driving record is one of the best ways to reduce your premium. Drive slow, drive defensive, don’t speed, and most of all, don’t drink and drive. You won’t just be saving money, you might be saving your life…
Source: http://www.carinsurancerates.com
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
Sat, 28 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 Check Car Loans
No credit check car loans are considered secured loans by the experts, because in these loans the vehicle purchased is considered part of the loan's collateral. However, cars depreciate, so financial institutions need additional collateral to secure the car loan without a credit check.
When attempting to approve the lending of funds for a car loan, the bank inquires from the borrower the purpose for which he seeks the loan for the new car. Banks do not grant loans for each and every purpose--they try to ensure thereturn of their loan by granting loans for productive purposes. Loans are usually not advanced for speculative and unproductive purposes, like social functions, ceremonies or for the repayment of a prior loan. These purposes tend to be riskier and increase the chances the car loan will not be paid back making it a poor investment for the lender.
Banks try to use the principle of diversification of risk when lending for car loans. A prudent banker always tries to select the borrower very carefully and takes tangible assets as security to safeguard the money lent. Tangible assets help the banker feel safe when granting advances on the security of such assets, yet some risk is always involved with a loan of any type.
Banks are profit out to make profit. But a savvy consumer with really bad credit knows that there is pressure on the banks to make loans as that is how they make this profit. They are in the business of lending money to you, so in many cases they will do all they can to get you the money you need for your car loan if you can prove that it is prudent for the bank to do so.
It is important to remain confident no matter your credit situation, if the first lending institution does not approve your application, keep trying. There is a lender for every situation and your really bad credit will not prevent you from attaining a new car loan. You simply need to shop around to find the car loan offers that are out there that and the banks that will work with your bad credit situation.
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...
.
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
Mon, 04 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
Best residual value cars – maintaining the resale value
With the recent jump in fuel prices, and speculation from some quarters that prices close to two dollars a litre are not out of the question in the near future, intelligent consumers are realising that residual value is an essential consideration when purchasing a new car.
It's common knowledge that a new car is not a good investment choice. As soon as you drive away from the dealership, thousands of dollars of value can be lost because your new car has now become second-hand. So how do you select a vehicle that will retain as much of its new car value as possible?
Size does matter
The days of the fuel-guzzling monster being the popular family car are long gone. Recent research by Redbook Australia has found that the lower purchase price of small cars, combined with lower running costs, has seen vehicles such as the Toyota Yaris and Mitsubishi Lancer top the list of cars which retain the most of their new car value.
The study compared the price of a new vehicle with its comparative resale price, three years down the track. Results indicated an overwhelming shift towards smaller vehicles, with larger passenger cars rapidly loosing the popularity they have enjoyed in recent decades.
Topping the survey list, and gaining the prestigious title of "the car likely to retain the most value overall" was the two litre, safety conscious Subaru Imprezza, retaining an impressive 62.9% of its new car value after three years.
Other small cars likely to retain significant percentages of their value include the Mitsubishi Lancer (56.9%), Toyota Yaris (56%) and Honda Civic (55.2%).
In comparison, the medium and large 'family' cars did not fare anywhere near as well with the highest honour going to the medium-sized Mazda 6, which only managed to retain 54.3% of its value over the three year period. The large car category was topped by the Chrysler 300c which retained just 46.1% of its new car value.
If you really need a car with more space, go for the Mitsubishi Lancer Wagon or Holden Astra Wagon, both of which scored percentages in the mid to high fifties. And if you truly desire a large car, try choosing a diesel or LPG equivalent.
Fuel choice
Enjoying an amazing surge of popularity, diesel cars are not only more economical to run than their petrol equivalents, they also retain their value longer. Diesel also offers the driver improved refinement and performance . Diesel has gained some popularity in Australia recently, and the trend looks set to continue.
LPG cars also enjoy economic advantages over petrol cars, due to substantial savings at the bowser. A recent decision by the Federal Government to delay the introduction of excise charges on LPG fuel until 2011 has been welcomed, seeing the residual value of LPG cars climb. Excise on LPG will be phased in slowly, seeing increases of 2.5 cents per litre each year for five years. Compared to an excise of 38 cents per litre for petrol and diesel cars, the proposed limit of 12.5 cents on LPG sees the attraction continuing long-term.
Colour
Neutral colours tend to retain their value better than the so-called fashionable colours which seem to change regularly. Today's popular colours will look outdated in two or three years time, radically reducing the resale vale of your car.
Area also plays a major role in popularity of car colour, with darker colours being more popular in cooler climates and light-coloured cars dominating in the warmer areas such as Queensland.
So, how do I choose?
To ensure maximum residual value for your new car after three, five or even ten years it's imperative that you consider all your options. Don't buy a car that's bigger than necessary and consider a diesel or LPG version for added economic benefits.
Finally, try to avoid the attraction of a lime-green or florescent yellow finish. It might be in vogue now but three years down the track the resale price will be substantially reduced.
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
Wed, 20 August 2008
Need pay day loans for
We all need a little fast cash from time to time. Pay day-Loans gives you instant access to the money you need during these tight times.
Regardless of how you manage your money there always seems to be a time when you need a little help with a payday loan. There are so many unexpected expenses that can occur that you can’t be expected to always have the money ready for them. Get your pay day loans that are available at any time to fill that financial gap until your next scheduled payday.
Source:http://www.payday-loans.net/
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