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Reasons to Avoid Longer Term Auto Loans

August 1, 2017

Most consumers would have a difficult time purchasing a new or used vehicle without the help of financing from a bank, credit union, or another lender. Vehicle loans allow a prospective car buyer to receive a lump sum specifically for the purchase of the vehicle of their choice, and payments of that total amount plus interest charges are made over the course of months or years. The interest rate applied to a vehicle loan is dependent on the borrower’s credit history and score, but because the car is collateral for the loan, lenders are able to offer relatively low rates. Both the monthly payment and the interest rate are fixed for the life of the loan, offering predictability to the car buyer.

Given that the average price of a new car is an impressive $33,000, a vehicle loan is the best way to purchase without having to save up a significant amount of money beforehand. However, each lender provides varied repayment terms which car buyers should understand before signing on the dotted line. Most notably, having a longer repayment term may be appealing on the surface, but extending the payoff of a new or used vehicle is not always a sound financial decision. Here are a few things to consider with longer repayment terms for new or used vehicle loans.

Immediate Depreciation

Selecting a longer repayment term for a new or used vehicle loan exaggerates the problem of depreciation. For new cars, the value of the vehicle is significantly reduced the moment the owner drives off the lot. While less dramatic for used vehicle purchases, depreciation still takes place immediately after changing ownership. When a longer vehicle loan is taken out on a new or used vehicle purchase, owners may be stuck with a loan payment and remaining balance on a car that isn’t worth that much if it were sold.

Negative Equity

Depreciation takes a toll on the equity in a vehicle as well. Equity is the difference between what is owed on the vehicle loan and the market value of the vehicle. When a longer vehicle loan is chosen at the time of purchase, the combination of smaller principal payments and rapid depreciation come together to create negative equity – owing more on the vehicle that its market value. When this takes place, it can be difficult to trade in the vehicle before the loan is paid off, and car owners have no options for using their vehicle as collateral for a short-term loan. Negative equity can become a dangerous cycle of debt, especially when a vehicle is traded in before the loan is paid in full.

Higher Interest Rates

The most common term for a new or used auto loan is 60 months, or five years, but some find that the monthly payment for that repayment agreement does not fit easily into the budget. A longer loan term of 72 or 84 months may be offered by the selected lender to help ease the shock of the monthly payment; however, a lengthier term often results in a higher interest rate for the life of the loan. Again, with lower monthly payments and less of those payments applying to the principal balance, car owners will inevitably face negative equity in the vehicle unless the loan is paid in full before the end of the term.

Borrowing from a reputable lender is a smart way to finance the purchase of a new or used vehicle, but card buyers should steer clear of longer term loans when possible. Consider reducing the purchase price of the vehicle, or selecting a used car over a brand new vehicle to keep monthly payments on a shorter repayment term to avoid depreciation, negative equity, and higher interest rates on the auto loan.

Banking Backtrack – 6 Tips For Reconfiguring Your Financial Priorities

Money

June 28, 2017

In order to achieve your goals, you need to make them concrete. Evaluating your financial priorities is the first step in successfully restructuring your expenses to meet your long term goals. Making a list of priorities in order of importance is necessary in order to restructure your financial priorities and ensure that you are taking steps forward, rather than simply making ends meet. Achieving your financial goals may require assistance from a personal loan to put you ahead, or may involve assistance from a trusted financial advisor. The following six tips are essential in order to successfully re-evaluate your financial priorities.

1. Remain on top of bills

Are you earning more than you are spending? The most important step in separating our most fundamental financial needs from the rest is ensuring that your income exceeds your expenses. Debt consolidation using a personal loan allows you to combine your existing debt and make one monthly payment through a lower interest rate as offered by a personal loan. This makes your debt easier to pay off, providing you with an allocated time frame to repay the consolidated loan rather than having multiple and confusing monthly payments of various debts. Consolidating your debt through a personal loan saves you a lot of money in interest and helps you remain on top of your bills.

2. Decide what is important

Your financial priorities will change over the years, particularly if you start or expand a family. Reviewing your spending habits over the last few months will give you a general idea of what your spending habits indicate is important to you. For most of us this will be food, education needs and other necessities and preferences. However, it is important to view whether your spending habits align with what you hope to accomplish in the future. What would you most like to do with your money? This leads us to point three.

3. Look at the big picture

While immediate needs and obligations are important, it’s important to consider your finances in accordance with your ‘big picture’. Too many people configure their financial priorities simply to make ends meet. Whilst this may be all that your income can afford, the only way to truly get ahead may be to apply for a personal loan. Using a personal loan to start-up your dream business, take the holiday your family needs or get the surgery you have been waiting for, ensures that you are taking steps forward rather than remaining financially stagnant. Creating measurable goals that can be accomplished, keeps you motivated and ensures your money is being used to further your ambitions.

4. Maintain an emergency fund

For many of us, an emergency fund is something we will “start later in life when I have more money”. However, when reconfiguring your financial priorities, ensuring you have money aside for an emergency situation is vital. When the financially unprepared are hit with an unexpected and expensive emergency, they are left scrambling for whatever funding is available. Often this will result in costly terms and interests rates. Comparing the rates of various personal loans in advance can ensure that if you require a loan for an emergency situation, that you receive the best terms available.

5. Optimize your returns

Are there any other strategies you could employ in order to maximise your goals? This may include seeking advice from a financial advisor in regards to investing your money in stock or a property. Investing your money can further your wealth and help you gain financial independence. Considering ways to optimize your returns is therefore an important step in the assessment of financial priorities.

6. Review regularly

Once your priorities have been ordered it becomes vital to remain on track and regularly consult your list of priorities. It can also help you track when your strategies have been successful and when may be the best time for you to make your move, secure a personal loan and achieve what you outlined in your ‘big picture’.

Being aware of your financial priorities ensures that you remain focused on the most important aspects of your financial life. Evaluating your goals and your spending habits ensures that your money is spent in a way that reflects your priorities, and furthers your ambitions. Reviewing your situation periodically will ensure that your financial priorities are current, so that your money is used in a way that most satisfies you.

Main Tips for Writing a Resume: Get it right the first time

Money

April 26, 2017

For a job hunter, your resume is one of the most important documents that describe you. This little document can make the whole difference between employment and joblessness. For this reason, it is important to learn how to write it effectively so that you can bolster your chances of landing employment. Moreover, after submitting a shoddy resume, you don’t stand another chance of correcting the damage. This article therefore shares some of the insights that can help you to polish your ability to write a compelling resume. Order your CV cheap on spideressay.com.

Papers and positions are good, but achievements are better

When it comes to the job market, papers are not as important as the ability to deliver. The reason is that employers are looking for people who can do their jobs productively, and not people who know much about their jobs. Additionally, they view your academic credentials as a supportive pillar, and not the main house they are looking for. You should therefore emphasize on showing your potential boss what you have done with your papers. Additionally, show them how you are intending to replicate those feats if they accept your application.

Don’t try to dazzle your potential boss with your papers because they have seen better ones in the hands of people who can’t perform. Remember, there are many ways of getting a degree, but only one way of satisfying your boss—performing your duties well.

Additionally, when citing your past positions, don’t dwell so much on the positions you held. Just as with the papers, your potential boss is looking to see what you did with the positions you held. If you can’t prove it, they may even begin suspecting you were fired for incompetence. For instance, you can say that when you were in the position of the regional sales manager, your former company was struggling. But through your intervention, it became a market leader within three years owing to skyrocketing sales.

Tell more about your skills

As you narrate your achievements, you need to show the hiring manager the skills you harnessed to achieve all that. If you highlight your skills combination clearly, the manager will know how well you can handle the position you are applying for. For instance, if you are applying for the position of a sales manager, show the manager that you have mobilization and training skills you can use to mobilize and develop your sales team.

Optimize your resume for easy reading

No matter how many skills and achievements your resume may contain, it can only benefit you if your prospective boss reads it to the end. Therefore, you should make it easier for them to skim through to the main points they may be looking for. If they have problems reading your CV, be sure it will gather dust for many years.

Find more help here

This post has helped you to come to a new level of understanding resume writing. You can find further help here by talking to our experts today.

Creative Ways to Make Money Online

Money

February 13, 2017

Right now, there are thousands of people around the World who are making extra money or an entire income using the power of the internet. There is a vast array of ways in which people can make money online and contrary to what you may think, you do not need to be highly technical for many of the ways in which you can make money online.

Earning money from the comfort of your own home is one of the best ways to live your life, you can cut down on your travel costs, have more time in your life and will feel far less stress compared with going to the office everyday. In the past you would need to rely on cold-call sales work or having to work as a live phone sex girl in order to make a living from the comfort of your home, but those days have gone. If you want to make some serious cash online then here are a few ways in which you can do it.

Freelance Work

The first place to start when looking for ways to make money online is a freelance working website to see if you have any of the skills which people are looking for. There are lots of great sites like Upwork who act as a jobs board for employers to advertise their positions to freelancers. There are a vast amount of different types of jobs that you could be doing online and many of them do not require high amounts of technical ability. On sites like this you will find people looking for writers, designers, virtual secretaries, email handlers amongst a whole host of other positions. Check here first and see if there is anything which can make you some money.

Selling

Selling things online can be a great way to make some additional cash, especially if you can get creative with what you are selling. Websites like eBay allow you to open up your very own shop where you can sell just about anything, you won’t have to pay for rent and overheads are minimal. Because it is so easy to sell online, there are a great people doing it, that isn’t to say that there isn’t enough business out there for everyone, there is, you just need to be smart with what you are selling and who to. One of the best approaches is to head to a thrift shop with your cell, check prices online of the things you see and if there is money in it then buy away and go get that profit.

Blogging

Blogging is not just a great form of expressing yourself online it can also be a great way of earning some money. It will be important that you can find a niche to blog about which people will enjoy and which can gain you a strong following and high volumes of traffic. Once you start attracting solid levels of traffic then you can start selling space on your website to advertisers.

Ways to Earn Whilst You Are in University

Education Money

January 1, 2017

Being in university is a time to make new friends, have crazy experiences and party like crazy, oh, and of course, to study. During your time at university you will of course be putting in the work when it comes to gaining a good qualification and the truth is that yes, there will be a lot of partying and making friends in-between. Something that you are going to need at university, other than an intelligent mind, is money to get through it.

There are options available to support your studies, student loans and grants for example or a scholarship if you rock at football like Jack Elway. That will cover your course fees but actually living will cost a little bit more and here are some great ways that you can earn some cash whilst you are studying hard.

Online Income

More and more students are turning to the internet as a viable way to make money whilst they are away at campus, some take it to the next level like Zuckerberg. Nobody expects you to create the next Facebook but there are some great options online to make some extra cash from your dorm room. You could start a blog for example or fill out online surveys which will pay a little each time, you could look to freelance work like writing, email handling, virtual assistant work, graphic designing, website design or a whole host of other tasks that people are looking for online. You can earn well and you won’t have any costs other than your laptop and a wifi connection.

Tutoring

Once you get into your second or third year of university you can offer tutoring to some of the younger students. Meet in a neutral spot or invite them to your dorm for an hour or two per week. Tutoring is not only a great way of earning some money but it will also help to reinforce your knowledge and give you the satisfaction of helping others. When the time comes to get a job you will find that putting something like tutoring on your CV will help you to look more attractive to prospective employers. A win-win all round.

Nighttime and Weekends

Sometimes you just need to do what is necessary to get the greenbacks in and areas such as bar work, restaurant work or working weekends in a clothes shop is where you can do exactly that. These may not be the most fun or pleasant of jobs but they can help you to pay for the necessities in life whilst you are studying. Ensure that you don’t go after the money too hard, you don’t want it to compromise your studies. Once you get to university try to get out as early as possible looking for work, there will be thousands of students looking to do the same thing as you and jobs may be in high demand and low supply, make sure you’re in there first.

How to Manage Money When You Start Earning

Finance Money

January 1, 2017

When I first started working full time I was still living with my parents, I had bought a cheap car a couple of months beforehand and I had absolutely no responsibilities other than my road tax and my car insurance. Looking back, I now realize that this was a perfect opportunity for me to sensibly manage my money so that I could have a bright future.

Unfortunately at that time, I was 21 years old and pretty much blew my paycheck each month on partying and general recklessness, if only I had known then what I know now. If you are entering the world of work and want to avoid making the mistakes that I did then here are some things that I wish I’d done at that tender age.

Save Save Save

There is a huge temptation to spend all of your salary each month and not make any plans for the future, after all, you are young and probably think that things will stay the same for ever, they won’t. The far better option is to be smart and start saving some of your money as early as possible. Look to save a quarter of your monthly income, you will thank yourself for the decision to do this when the time comes along to buy a house. I have quite a hefty mortgage and had I saved better then I could’ve got a much better deal on my borrowing.

Consult Someone

People seem to have this notion that great financial advisors like Keith Springer are solely for the rich and famous in this World, that is not correct. In fact using financial advisors should be encouraged from an early age when we are less financially literate. They can offer you great advice on what to do with your money both now and going forward and they can even help you to find great bank accounts and help you make savings plans. You don’t need to meet with one on a weekly basis, just go and see one, lay out your financial situation to them and see what advice they can offer you when it comes to being smart with your money.

Monthly Budget

Remember that you are in it for the long-haul when you approach your finances, of course you could die tomorrow but let’s assume that you aren’t going to and work out how best to set yourself up for the future. A solid monthly budget can help you to stay within your financial goals, budget for everything even if it is alcohol and party money or gadget-buying money, the point of the budget is to control your spends. If you sit at the beginning of each month, take a look at your salary, remove the amount that you wish to save and any other costs which you cannot avoid paying (car insurance etc.) you will be left with your spends for the month, try and split this up into weeks until you get paid again and stick to your plan. Doing this early on will really help you out in the future when you start paying bills.

It Can Be Quite Hard to Find a Reliable Numismatic Dealer

Business Careers Money

January 1, 2017

One of the world’s oldest hobbies is collecting coins. If you are interested in becoming a numismatic collector, then it is vital that you find reliable rare coin dealers as well. These can help you not just in terms of finding coins, but in confirming their authenticity as well.

Creating a Coin Collection

Finding a rare coin is perhaps the most exciting bit about collecting them at all. Unfortunately, cunning people are aware of this, and they will try to sell you counterfeits instead. This is why a good dealer should have an excellent reputation, not just in terms of what they sell, but in terms of how they authenticate as well.

A numismatic collection is both exciting and frustrating, particularly if you are hoping to complete a set. This can take years to do. A good coin collector should be able to find any missing pieces of you are still looking for. In fact, without a good coin dealer, you are likely to struggle to ever finish a collection.

Coin collectors may also need a dealer to sell coins every once in a while. This could be because they need a bit of money for themselves, because they have doubles, or because they want to use the money from less rare coins to purchase a rarer one. Again, you need a dealer for this.

The good news is that you can find these dealers online. They have lots of resources for you and they should, if they are truly good dealers, be as excited about coin collections as what you are. They should also be a wealth of knowledge, explaining to you why coins like Buffalo Nickels are so rare. They can also tell you how to look after your coins and how to store them.

So how do you recognize a good dealer?

The Hallmarks of a Good Coin Dealer

They have a lot of experience. You need to make sure that they actually studied the subject themselves. Make sure they have been in business for a while, therefore, and that they have helped others just like you.
They have excellent assets. Every once in a while, the market is flooded with counterfeit coins. You should check for a dealer that has ridden out these types of storms in the past. Sometimes, counterfeits are really hard to spot, so the least you should look for is a certificate of authenticity a well.
They have a fantastic reputation. If you go to a dealer’s web page, they should have a number of reviews from other clients, but also from their peers. However, there is always a risk that these reviews are not genuine, so make sure they are also listed on independent sites.

A coin collection is an investment that can pay you well, and you need to be careful with what you invest in. Do some research into the world of coin collections before choosing a dealer to work with. And remember that you do not have to stick to a single dealer either.

New Records Expected in the U.S. Economy and Stocks with President-elect Donald Trump

Finance Money

December 20, 2016

With market volatility rising, spread betting could see major winners in the coming weeks and months as analysts believe that Trump could cause U.S. stocks and the economy to set new highs according to the Deutsche Bank.

The news and reactions seem to points to Trump being a positive influence over the U.S. stock market and economy. It is believed by analysts such as Chief U.S. Equity Strategist David Bianco that by the time Trump is sworn in as President of the United States of America, the S&P 500 index will rise over 2,250.

Investors are getting behind the idea that there is a much higher chance of a continued and long-lasting expansion in the economy that could match or beat the 10 year U.S. record. Investors believe that by the year 2018, the S&P 500 could reach as high as 2,500.

If the American economy can make it to 2019 without suffering another recession, it could break the last 10-year record set from 1991 to 2001.

The largest component of the GDP is dampened by the consumption of the growing retirees on Social Security, lowering variability while the structural decline in the growth potential equates to smaller shocks to the market needed to cause a downturn in U.S. market activity.

Bianco does not ignore the risk of a rising dollar on the Corporate America’s bottom line, the possible trade policies that can be seen as protectionist under the new Trump presidency and rises in the Treasury yields, they still think that the most important aspects for investors will be the increases in profitability in banks and the lower taxes.

An estimate from the Deutsche Bank sees the U.S. corporate taxes to drop by as much as 25% bringing it closer to the current OECD average. This suggests that earnings per share on the S&P 500 could see a $5.00 increase with every 5% tax cut. Bianco has therefore increased their earnings per share to at least $130 in 2017 for the S&P 500. This constitutes an annual growth rate of 9%, assuming they hit their 2016 mark of $116. Bianco is unsure of the exact amount the corporate tax rate will be cut but are sure that it will be significant.

If people do not convert their financial holdings from foreign currencies to their country’s currency, the tax reduction that is expected for corporates would provide various benefits to the domestically-orientated organizations. Since November, the Russell 2000 Index has performed vastly better than the S&P 500.

Financial asset prices could be kept afloat by a special repatriation tax holiday, especially if the funds were used for dividend boosts, M&A or buybacks. Bonds will still not be enough of an alternative to shrinking stock valuations or make businesses turn to higher interest expenses. Bianco went on to say that as the Fed continues to the current tightening cycle, it will help to keep the labour market from becoming too volatile as well as help to put a cap on the longer term U.S. Treasury yield curve. Because the utilities stocks have been battered since the election, Bianco has recommended that investors should turn to it as a source of income.

Historically, utilities have seen benefit from lower U.S. corporation tax rates since it gives all the profits back to the U.S. and there is then little foreign exchange risk. It also benefits from a continued the 15% tax rates on dividends as opposed to income tax rates and 3.8% the Affordable Care Act tax that will likely be dropped. Furthermore, utilities will benefit from Federal loans and infrastructure grants as well as benefiting from safe-havens for retirees and other institutions that are looking to lower their fixed income exposure.

Spread betting on sites such as CMC Markets could therefore see some major winners in the coming weeks and months as Trump becomes sworn in and does what most analysts expect him to do. Americans are the most hopeful they have been in a long time based on reports by a Bloomberg sentiment index from the University of Michigan. It showed a broad increase in confidence across incomes, ages and religions. While this might be a post-election honeymoon period for some, confidence is much higher than expected pre-election results.

Thinking of filing for bankruptcy? Here’s what you need to know…

Money

November 29, 2016

Thinking of filing for bankruptcy? There may be another way (or not) — Photo by CC user geralt on Pixabay

In debt up to your eyeballs? If you can’t even come up with enough money to cover your monthly minimums, you might have to file for bankruptcy through a firm like Olympia Law PC.

However, the process of defaulting on your financial obligations is no simple matter. Below, we’ll discuss what you need to know before filing for bankruptcy.

You may not even need to file for bankruptcy

Virtually all people that consider filing for bankruptcy are in a mental space of overwhelm when it comes to dealing with their debts.

They think that their income will never be sufficient enough to repay the loans they hold, so they think that waving the white flag is the only option available to them.

However, by doing things like changing your mindset and negotiating a lower interest rate from your creditors, a situation that might have seemed unmanageable at first glance can become resolvable over a period of time.

Given the destructive effects that bankruptcy can have on your credit rating, opting for a protracted repayment plan (even if it takes years) is the preferable option.

Can I file for bankruptcy?

Even if you have a desire to file for bankruptcy, there might be legal roadblocks that may prevent you from doing that.

The most basic test that you must pass to file for bankruptcy is that you must owe more than $1,000, and lack the ability to make payments on that debt when it is due (i.e. you are insolvent).

However, it gets more complicated than that, as there are certain types of debt that cannot be discharged in bankruptcy.

If you owe alimony, child support, student loans (if you are less than seven years removed from graduation), legal fines, or if your debt came about due to illegal activity, you will not be able to make these obligations go away by filing for bankruptcy.

Additionally, secured loans such as mortgages and car loans may not be able to be discharged, although you might be able to renegotiate payment terms with your creditors to better fit your financial situation.
If you hold unsecured debt through credit cards, pay day loans, etc though, you may be able to get these debts dismissed or restructured through bankruptcy proceedings.

If you do, pick a trustee dedicated to your cause

Your creditors will do everything they can to limit the damage caused by your default, so it is important that you have competent representation throughout the entire bankruptcy process.

They are responsible for drawing up the paperwork, negotiating an amenable settlement with the parties to which you owe money, and to provide you with expert advice on how you should manage your finances going forward into the future.

By choosing one who executes their duties professionally, this stressful process can proceed smoother and with better outcomes for you and your family.

You have duties during this process: fulfill them

Declaring bankruptcy isn’t as simple as hiring a trustee and calling it a day. You have important duties to carry out before the process can proceed to its conclusion.

Generally, you must provide them with proof of your monthly income each month, attend credit counseling sessions, and pay any surplus income to your trustee during the time you are in bankruptcy, among other responsibilities.

Know that you’ll have a long road back to respectability after discharge

Even after you’ve eliminated your debts, your life won’t be easy after emerging from bankruptcy. The fact that you opted to default on what you owed will act as an anchor on your credit score for as long as seven years, plunging it anywhere between 160 to 220 points from wherever it was before you declared insolvency.

10 Things You Ought to Know Before Getting Yourself a Mortgage

Money

November 23, 2016

Before you start to approach local banks and other financial institutions with the aim of obtaining a mortgage to buy a new home, there are a few facts that you need to know. Borrowing such a large sum of money without doing some research first is not a good idea as you will be entering into a binding contract that lasts for many years. With this in mind, below is a list of 10 things you really ought to know before you apply for your first mortgage, which should stand you in good stead when you get in touch with local lenders.

10 Things You Should Know Before Applying for a Home Loan

Make a note of the following ten points, or bookmark this page so that you can refer to it whenever you want.

1. Your Credit Score – Your credit score and history will dictate the rate of interest you are likely to be charged on a mortgage so the first thing you need it know is what kind of score you currently have.

2. Your Budget – What a bank or mortgage broker thinks you can afford and what you can really afford are often two completely different things. Go through your budget carefully to make sure you do not overextend yourself.

3. Your Partner – This may sound like an odd one but if you are getting a joint mortgage, you need to be absolutely sure that your partner is 100% reliable.

4. Your Building Company – If you are paying a Perth builder to create a beautiful new home for you, take the time to get to know how they work before you sign on the dotted line. If you click here, you can get a good idea of what reputable firms have to offer.

5. Possible Benefits – Depending on where you are in the country and the current regulations, there may well be certain government schemes for which you are eligible, which could help to defray the cost of your new home.

6. Your Location – The location of your new home will have a major influence on its future value so research this particular factor very thoroughly.

7. Your Future Plans – Given the long-term nature of mortgages and the fact it may take some time before you can sell your new home for a profit, you need to consider your future plans carefully.

8. Your Lender – Although it is tempting to make all the arrangements online, you should visit the bank from which you are going to borrow, to make sure you are happy with their terms and conditions.

9. The Fees – Virtually all Mortgage Providers charge application fees, and there may be other costs involved in dealing with them too. Make sure you are aware of them all up front.

10. The Real Value – Pay for an independent valuation of the house you wish to buy.

There are other things you should know but the list above will get you off to a great start when applying for home loans in Western Australia and elsewhere.

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Category: Money

1. Remain on top of bills

2. Decide what is important

3. Look at the big picture

4. Maintain an emergency fund

5. Optimize your returns

6. Review regularly