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Monthly Archives: November 2016

Some Tricks to Avoid Personal Finance Crisis

It is in the news nowadays all over the place about the home mortgage crisis that is crippling the housing industry in America. Elsewhere in the world, there is similar news about the real estate slowdown. Many families are unable to keep up with the increasing cost of energy as oil prices have been skyrocketing. To add to it is the expense of college education for children, car payments and other revolving credit card payments and the net result is a massive level of stress in the financial health of the family and a potential personal finance crisis.

The age old adage of prevention is better than cure is applicable one more time here. The only way in which one can avoid a personal financial crisis is by proper pre-planning. Keep it simple; one does not need to complicate matters any more than they have to be. Start off with your take home income and budget a certain amount for rent or mortgage, a certain amount for energy, food, transportation, education and miscellaneous expenses. You need to categorize each of these into further sub divisions and really pin point the budgeted expenses. There needs to be a savings plan for a rainy day and sufficient life insurance coverage expenses also in the event that the main breadwinner of the family passes away.

Once these expenses have been written down, then additional analyses need to be performed. If the income meets or exceeds the expenses, then you are in good shape. If the income falls short of the expenses, then you have simply only two choices. One choice is to cut down the expenses. The other choice is to find additional sources of income. There is no magical way in which you can finance yourself out of debt by borrowing additional money by any means. You do not want to get caught in the perpetual debt machine. Debt comes at a price and I cannot believe that there are people that borrow more and more to pay for things they cannot afford in the first place. Proper personal finance planning is absolutely essential to avoid crises in the future and one needs to be honest in drafting and executing such plans.

About Obtain Financial Success

Keep in touch with world money markets so you are mindful of global financial developments. Many Americans don’t pay attention to news outside of the United States, but those with investments that can be affected by global changes need to take a wider view. Knowing the world financial situation will help you fine-tune your strategy and to make educated market predictions.

Try writing things down on a large whiteboard in your kitchen or den. You will pass by it all day so it stays fresh.

Avoid large fees that some brokers charge. Brokers that invest your money long term investments charge fees for the service. These fees will take away from the money that you earn because they are paid before you get your total return. Avoid using brokers who charge large commissions and don’t invest in funds that come with excessive maintenance fees.

Use from two to four credit cards to enjoy a good credit rating. Using a single credit card will delay the process of building your credit, and more than four cards means you cannot manage your finances efficiently.

Patience can save you a valuable asset when considering your personal finances. It is very common for many people to go out and purchase the latest electronics immediately. If you can be patient and wait just a little while, those prices will go down by up to 50%. This will leave extra cash in the long run.

If you want a measure of security in your financial situation, it’s important to have an established savings account into which you make regular deposits. Having something to fall back on in cases of an emergency. Even if it’s impossible to make a significant contribution each time, and your nest egg increase.

A lot of credit card companies provide bonus points that you can use to get low cost or free air fare. Your frequent flier miles may also be used at some hotels for services and products other than flights.

Take advantage of online banking alert services offered by your bank can offer you.Many banks will send you email or texts when there is activity reported on your account.

Your can is among the most vital purchases you’ll ever make. You can also look for a vehicle online on dealership websites.

Many spend over $20 weekly trying to win a lot of money from a local lottery drawing, but it makes more sense to put that amount into savings instead. This is a guaranteed way to ensure that you have money.

Make the Unsecured Personal Loans

Choose Your Lender Carefully

When you apply for a loan, you will generally apply to many lenders, banks of financial institutions. It is essential to consider your options before you choose one that suits your needs. Accepting the first loan offer may deprive you of better loan proposals in the near future. Each lender will have different schemes, services, offerings or deals available with these loans. It is a challenge, to uncover the hidden fees and stringent penalties in the time of late of missed payments while applying for the loan. Check all these fine details in the terms and conditions of the personal loan application[DM1] .

Keep your credit score high

Keeping a credit score high is a must for the personal loan eligibility becausethe lenders consider your CIBIL or FICO credit score as reference of your credibility. When applying for this kind of unsecured loan, the score will influence the interest rate, tenure and the principal amount available. Mostly, if an applicant has a score of 700 and more, he has a high possibility of getting his loan approved. However, if it is anything less, you will need to demonstrate strong repayment ability through your professional track record to get a chance to avail loan. To strengthen the application, it is necessary to improve the score which requires effort and pre-planning.

Submit an application for a practical Sum

A large principal amount may solve problems or book your international holiday right now, but repaying it is not easy with its high interest rates. EMIs can become unaffordable in the long run. So, remember that a large sum without collateral can become unnecessary problem in the future. Work out a conservative budget to your convenience.

Personal Loan Scams to Look Out

Surely that won’t be enough?

Some banks will pressure you into applying for more money than you actually need, and more than what you can realistically afford to pay. They do this knowing that they will benefit in the long run. It goes without saying that you should never apply for more than you can afford to pay back within the stipulated time period. Make sure that you are aware of your budget and limitations!

Legal threats

Once your loan has been approved, you still have the right to decline the lender’s offer. Many will attempt to convince you that they are going to take legal action against you should you refuse the loan. This is simply not possible. In order to avoid this, be sure to know your rights before visiting any banks or money-lenders.

Upfront payment

If you are asked for an upfront payment before your loan application has been processed, refuse and go elsewhere. No reputable bank will request this of you.

Loan offers via email

If you receive an email offering you access to financial assistance, even if it looks like it comes from a well-known bank, it is almost certainly a scam. The sender is probably phishing for your bank details. Do not reply to any such emails, and if the communication continues, consider reporting the sender’s email address to the police.