Is A Payday Loan Right For You?

Freedom Channel

Before taking out any kind of loan, it pays to make sure that it’s definitely the right decision for you and your financial circumstances. Different kinds of loan suit different situations; a long-term DIY project, for example, might be better suited to a second mortgage or a heftier loan from a bank, while a short-term expense means taking out a short-term loan might be a good idea.

Nowhere is this maxim more true than in the world of payday loans. Payday loans have garnered a bit of a bad rep from the media, but that rep is undeserved; they’re just like any other kind of loan, but some unscrupulous shark companies managed to gain a bench in the court of public opinion before greater financial regulations led to these companies ceasing business operations. In reality, there are a number of situations in which a payday loan is a great idea for you. Here are a few situations where payday loans would come in handy.

When your credit rating isn’t great

No matter how reputable or understanding your bank may be, if you don’t have a great credit rating you’re just not going to get accepted for a loan. Credit score is often the watermark by which you’re judged for a loan; if the score is low, you won’t get credit, no matter how solvent you may currently be. There are a number of ways to improve your credit score, but most of them are long-term and some of them even involve taking on more debt. Payday loan companies, by contrast, will usually approve you for loans even when your credit score is low. By taking out a payday loan, you can easily avoid the embarrassment and difficulty of applying for a loan only to be rejected when your credit score isn’t up to scratch.

If your car stops functioning

If you’re anything like us, then your vehicle is the absolute backbone of your life. You can’t imagine going anywhere without it, and on the rare occasions when you do use public transport you feel naked. Your car is crucial, especially if you’re driving somewhere remote or distant for work. With that said, if your vehicle breaks down and you just don’t quite have the cash to cover the repair cost before payday, that’s when a payday loan might come in handy. You can apply for a quick, easy cash injection, then pay it back once your pay comes in. There’s nothing more important than peace of mind when it comes to your primary mode of transportation, so if you find yourself at a loose end, don’t be afraid to go for a payday loan.

When you’ve done your research

We said earlier that payday loans are just like any other industry when it comes to disreputable companies, and that’s absolutely true, but despite tighter financial regulations, there are still companies operating out there which – simply put – shouldn’t be. Before you take out a payday loan, make sure you’ve done solid research into which companies will do right by you. Before taking out a loan, the loan company should make your options clear and obvious; they should, optimally, discuss the loan with you before approving; and they should make the process of repayment, as well as what would happen should a repayment be late or non-forthcoming, crystal-clear. Don’t take out a loan until you find a company that satisfies these criteria, as well as any you might personally have.

When a friend or family member needs help

Here’s a situation that will be intimately familiar to many: a close friend, relative or partner suddenly loses their job. They turn to you for help, because they trust you and they know you’re financially solvent, but you’re saving for something important. How best to help them? Well, why not consider a payday loan in this circumstance? Taking out a small, quick loan will enable you to help them in the short term, then when they’re back on their feet again they can see about repaying you. You’ll be able to dip into your funds in a much more consistent fashion to repay the loan rather than drawing out money in a lump sum to give to your loved one, and they’ll thank you for being their rock in hard times.

When another debt is close to being repaid (careful!)

We want to slap a massive caveat onto the front of this one: do not use payday loans to attempt to pay off significant debts elsewhere in your life. Doing this will only lead to heartbreak as the loans pile up; if you’re not solvent enough to make regular repayments on debts, you’ll need to speak to a financial advisor or someone at the loan company to make bespoke arrangements rather than simply transferring the debt somewhere else. That said, a payday loan can be a great option if you just need to cross the finish line on a loan that’s seriously close to repayment, but for whatever reason you just don’t quite have the funds to spare in your bank account. Paying off the payday loan once payday comes will be easy, and you’ll rest easier knowing that the bigger and more pressing debt is paid.

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Banking Backtrack – 6 Tips For Reconfiguring Your Financial Priorities

Money

What are your Financial Priorities?

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.

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When You Should and Shouldn’t Take Out a Loan

Finance

There are many reasons why people apply for a loan. Sometimes people apply for loans out of necessity. Sometimes people apply for loans to buy products or services that are not really needed. It is important for people to understand the cost of taking a loan. There are many factors affecting the cost of getting a loan, such as your credit score, your assets and your job. The size of a loan varies from a few thousand dollars to a few hundred thousand dollars. There are many reasons why someone should take a loan or should not take a loan.

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Why you should take a loan

1. Buying your first home

This is one of the good reasons for you to apply for a loan. A home loan allows you to own a home instead of renting an apartment. The loan can be repaid in 15 or 30 years and you will get the lowest interest rates if your credit history is good. A home loan also gives you tax benefits, and can be easily calculated with a no charge tax tool!.

2. Student loan

If you are a student, then applying for a student loan is a good choice, as it allows you to get a degree in an area that offers good job opportunities. The government backs most of the student loans and the payment terms are very generous. The loan offers a way of funding your future.

3. Loans for Investments

If you are financially independent and responsible, then you can take loans to fund your investments. For example, you can borrow money to buy investment properties. These kind of loans are not suitable for regular folks. You must have the necessary financial knowledge and assets to apply for such loans.

Why you should not take out a loan

1. Bad credit history

If your credit history is not good, then you will not get the best loan terms. You must work on increasing your credit score before you applying for a loan. Typically, banks and lenders will charge you higher rates if your credit is not good. If you are someone with a poor credit history, then you should refrain from taking a loan.

2. Purchasing assets that are depreciating

If you are planning to buy assets such as automobiles, which are depreciating over periods of time, then you should not consider taking a loan. It is always recommended to take a loan to purchase items such as a home, which are appreciating in value and act as a hedge against inflation. Most people are in the habit of purchasing depreciating assets such as furniture, TV, smart phones, and automobiles by taking high interest loans. This is not a good idea.

3. Private loans

There are many private loans available today. These are very expensive. You will end up paying very high interest rates. It is always recommended to get a loan from major banking institutions and lenders. If your credit is not good, then you may be tempted to get private loans. You should not consider this option unless it is for an emergency situation.

4. Borrowing from credit cards

Credit card companies offer balance transfers. However, after the initial period of lower interest rates, the interest rates will increase drastically. Your monthly payments will go up. Do not fall for high interest balance transfer offers from credit card companies.

There are many reasons why people take out loans. However, there are not many good reasons why people should take a loan or should not take a loan. Some of the reasons listed above are helpful if you are a would-be borrower planning to take a loan. Taking a loan is a financial burden and should be avoided unless it helps you to accumulate real assets, which are appreciating and lead to financial independence.

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How to Become a Top Financial Advisor

Finance

Today we are going to take a look at one of the World’s top financial advisors and what skills you are going to need if you wish to be a financial advisor. Being skilled with numbers and finance is a skill that you can of course learn but in order to be able to give advice to people you are going to need far more than this. Financial advisors need to have a firm understanding of the financial markets and how people can wisely invest their cash in stocks, shares, bonds, bank accounts and property. Let’s take a look at an example of a great financial advisor, Patrick Dwyer Merrill Lynch wealth manager and what skills you are going to need to replicate his success.

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Patrick Dwyer

Dwyer is currently managing over $2 billion worth of assets for wealth management giant Merrill Lynch and is considered one of their key advisors. After gaining his MBA from the University of Miami, Dwyer went straight into the MBA program with Merrill Lynch and has been with the company for over two decades. During his time with the financial services company he has been regularly featured in the Barron’s list of top 100 advisers as well as being featured as one of the best advisors in the World by the Financial Times In 1999 he joined Merrill Lynch’s elite group of professionals who would solely advise the ultra-rich in managing their finances which is where he currently plies his trade.

Here are Some of the Skills You Need

If you want to be a top advisor like Patrick then you are going to need to be an industry expert, this involves you constantly keeping an eye on market trends and global positions as well as new industries. You will never stop becoming a student of the financial world and the moment that you think you know all that there is to know, is the moment that the industry will pass you by.

Math and Computer Skills

Math and computer skills are the basic requirements for any financial advisor and the industry relies heavily on these skills. You cannot hope to achieve anything in the world of finance with poor math skills and your computer literacy should be high as you will be using them for a huge range of tasks on a daily basis.

Communication Skills

If you are going to be advising people on what they should do with their vast wealth then you need to have a good bedside manner. The wealth management industry is highly competitive and you need to ensure that, for the good of the company, that you can gain your client’s trust and loyalty. Your communication with your clients should be outstanding.

Salesman

When you are offering your advice to a client, you are essentially selling them an idea of yours and you need to be able to do so in such a way that will make the customer want to go ahead. In order to do this you need to be able to analyze complicated details and present in a way that your client will understand.

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