Category: Personal Finance

Things You Should Know About Personal Loans

Applying for a personal loan is a great solution if you need help with financing an important project. A personal loan can also help you get out of a bad situation if you need cash quickly and can afford to pay the loan back. Borrowing money is an important responsibility and you should learn more about personal loans before considering applying for one.

Getting a personal loan will be easier if you have a good credit score. Consider building your credit score by applying for a small loan first or by using credit cards for a while. If you do not have enough time to build your credit score, you will have to use one of your belongings as a collateral for your loan. Most loan provider will accept your vehicle as a collateral but you will not be able to borrow more than your vehicle is worth. Using another valuable item can be an option depending on the loan provider you choose.

Personal Loans

You should assess how much money you need to borrow. Money lenders might try convincing you to borrow more than you need so they can earn more from interests and other fees. Your loan will be much easier to pay back if you borrow as little as possible, even if borrowing more means getting a lower interest rate. Remember that the best way to get out of debt is to make your payments on time and pay your loan back as quickly as possible. Your personal loan payments should correspond to your budget or your financial situation will become worse.

It is very important to borrow from a licensed professional. Loan providers can obtain a license by agreeing to follow certain guidelines designed to protect consumers. A licensed loan provider has to clearly explain their fee structure and must offer reasonable interest rates. You are taking the risk of being charged hidden fees and facing illegal repossession methods if you borrow from someone who is not properly licensed. Ask your loan provider for their license number and contact the organization that issued the license to make sure it is still valid.

Calculate how much your personal loan will cost you. You need to make sure the monthly payments will fit within your budget before borrowing the money. If you do not have a way to pay the loan back, it is best not to borrow the money. Making your payments on time should be a priority since late fees and interest rates can add up quickly. If you have to borrow money at a high interest rate because of your bad credit, you should try paying the loan back in one or two large payments to prevent interests from adding up.

Do not apply for a loan without learning more about the terms and conditions. Licensed money lenders have to go over terms and conditions with you but you should not hesitate to ask questions if there is something you do not fully understand. Doing some background research about the loan providers you are interested in is a great way to avoid issues and make sure you understand the conditions you are agreeing to. Keep in mind that submitting your application often means agreeing to the terms and conditions. If you decide to borrow money from a loan provider that operates over the Internet, talk to them on the phone first so you can ask questions.

These tips will help you find a good personal loan. Take the time to compare your options and learn more about interest rats or fees before applying for a loan. Keep in mind that borrowing money is a good financial decision if the loan can help you improve your situation and if you can afford to pay the loan back on time. You could end up in a worse financial situation if you are not careful and borrow money you cannot afford to pay back. Do more research on different loan providers before applying for personal loans and try improving your credit score if you can. Do not hesitate to have a friend or a relative help you find a good loan provider if you need to.

Some Myths About Personal Finance

Since everyone is involved in personal finance, it is inevitable that the world is full of myths and mistruths about personal finance. So many people are looking for an easy angle and a way to avoid the responsibility of dealing with their finances. Let’s take a look at some common myths and see how true they really are (hint – not very true at all).

1. I’m not 18 yet, so they can’t make me be responsible for my debts

Wrong. Very wrong, in fact. You can’t sign a legal contract before you are 18, so you can’t sign up for a credit card of your own or get a loan. That doesn’t mean that you can run up your bill if you do have a credit card, though. In order for a teen to get a card they need an adult to co-sign. That adult will be responsible for the debt which is racked up by the teen. For most people it would be worse to hang your parents with a debt than it would be to run one up for yourself.


2. It is safer if I don’t sign my credit card

Also wrong. Someone must have thought that not signing your card would protect you from identity theft because the bad guys who got their hands on your card wouldn’t know what your signature looked like. Unfortunately, whoever came up with that theory wasn’t very bright. They won’t know what your signature looks like, but they can just sign it themselves instead. That way, when they go on a spending spree their signature on the bill will perfectly match the one on the card and they will have a whole bunch of new stuff. You will only be left with the bill for all of it.

3. Easy money can be made helping foreigners with their banking problems

Really, really wrong. You may have seen the offer and it probably sounded pretty good. Someone in another country (often Nigeria) is having trouble getting a whole bunch of money out of the country because their government won’t let them remove it. If you will help them by putting the money into your bank account and then letting them transfer it to another account then they will leave behind a big sum of money as a reward for your troubles. So what’s the problem? Well, they want you to give them all of your banking information so that they can put the money in your account and take it out afterwards. The thing is, they just use the information you give them to empty out your account of all of your money and then they disappear so you can’t track them down.

Let Yourself Find Financial Peace!

One of the resolutions we had this year was to write more about the mental side of personal finance, something that doesn’t get talked about as much. It’s true — unless you have your mind in the right place, you can get all of the advice in the world can still be in the same place financially. It’s sad, but its’ really true. You just need to make sure that you’re thinking about the bigger picture as much as possible. You can’t just sit there and think that there’s no way that you are ever going to be able to afford to fix your finances. That’s negative thinking, and in this arena…negative thinking can actually cost you big time. You start thinking that there’s no hope for you, and then you literally start living like there’s no hope for you ever. You can’t find yourself making that type of mistake. It just doesn’t allow you to get the type of happiness that you set out to receive in life.

Nobody wakes up as a child and thinks that they’re going to grow into a world filled with struggle. But the world isn’t fair, and that’s what happens sometimes. Sometimes we don’t get to go off to University, and we have to take a job to take care of our family. Or maybe our parents die before we even become an adult, and we have to live with grandparents that we don’t like, or aunts and uncles that have never visited us. They want to do the right thing, but they were busy living the high life found when you don’t have children. They never realized that they would have to take in their sister or brother’s children. Resentment often sets in, making life very hard.

Financial Peace

But what about when love turns sour? You start thinking about this big, brave world where you and your spouse are going to take over everything. There will be love and happiness, right? The reality is that you’re going to find that you will have to think carefully about what you will accept and what you will refuse. If you’re someone that isn’t going to take something laying down, then you have a lot of trouble waiting for you. Marriage is about compromise. When the wedding cake has been eaten and all of the fanfare has gone away, you’ll find that you’re going to be in for a big shock over time. There’s nothing like making sure that you have things laid out in a certain way.

Of course, this brings us to the financial blueprint, but not yet. You have to stop and realize that you’re worth it. It can be hard to hear that. When I was growing up, I didn’t get told that I was really worth it. Believe it or not, that soaked its way into our finances. I started thinking that there wasn’t any point for me to really do anything in life, because nobody would take me seriously. I wasn’t worth it. So instead of fighting for promotions at work — I just let other people step in. By the time I realized that I was a pretty good person, there weren’t any posts available for me to take on! That was a pretty miserable experience, and one that I never, ever want to repeat if I can help it. (more…)

A New Baby in 2013 – Think About Your Finances For Max Success

We’re probably going to step on some toes today. You see, a new baby changes absolutely everything. Many people will say that it’s virtually impossible to plan for a new baby. However, we take a look at the matter from a different angle. While it’s true that you cannot plan for everything, the reality is that there are some things that you can think about long before you go to the hospital to greet your newborn child.

The truth is that you have to make sure that you are going to think about everything that you really want your child to have over time. Yes, that means that you have to think about the uncertain future. Yes, that means that you have to figure out how you’re going to make ends meet. Yes, you’re going to have to figure out how to be the best parent possible to a small life that’s going to depend on you completely… whew! That sounds like a lot of work, doesn’t it?

That’s the point. We have to be serious about the process of raising small humans that grow into adults who will share the burden of the world with us. We want to raise productive individuals, and that boils down to a matter of environment. Do you want to put your child into a private school? This might cost a lot of money where you live. On the other hand, if you’re thinking about moving to an area with better public schools, you should realize that you’re going to pay a lot more in terms of property taxes.


Writing out your goals will help you keep an eye on them.

Naturally, we have to also address debt. Debt is something that you need to think about as well. You don’t want to feel like you’re having to face everything head on, but you do need to be aware of how much debt you’re carrying. Unless you’re going to be getting a house when the baby is born, you have some more time to pay off debts than other people do. When you’re trying to shop quickly for a home, you need to make sure that your debt is truly taken care of the right way. It’s going to be up to you to figure this out. You don’t have to have all of the answers, but you do need to be aware of what you’re honestly doing with your time.

Keeping a good budget to lower debt is very important. Sure, it means that you might not be able to go out with your friends, but you have to make sure that you have a lot of the baby supplies ahead of time. This attitude and approach will let you actually shop for a new carseat that’s top of the line compared to having to scramble for a cheap one at the last minute.

Now then, you might need some help with your first baby. Don’t be afraid to reach out to friends who have children and see what used items they can give you. Low income families should also look at the assistance programs in the area. You have to make sure that you are truly looking at every aspect of raising a child over time.

Thankfully, you’re not alone at all in this venture! A new baby attracts the attention of everyone. Everyone will band together to support you. What you need more than financial advice is to have emotional advice as well. The subject of children and money is very hard. Some people say, “Why bother?”

The truth is that you will find that just as you looked to your parents for information on everything, your kids will look up to you as well. They want to know that you’re doing everything in your power to lead them down the right path. They want to trust you, and you want to give them good information.

If you take nothing else from this guide, realize that it’s definitely worth your time to teach your children sound financial advice. You do that by leading the way yourself. If you can’t get your spending under control, how can you expect your children to be able to do so when they are adults? If you live on credit cards, you can pretty much expect your children to feel that this is okay.

You have a lot of big choices ahead, but don’t worry. You may make some mistakes along the way, but they are rarely fatal mistakes. Just correct course as you go, and keep an open mind. Good luck!

Give Yourself Time To Get Out Of Debt!

I get a lot of great messages and emails and comments from everyone, and even when I post on personal finance forums everyone is very supportive. So I wanted to cover something that’s really important to me right now. I think everyone will gain something out of this post, and I’m sorry if it comes out a bit long.

The top thing that I want to say to people starting out on this journey — the same journey that I started out on years ago — is that there’s nothing wrong with giving yourself a lot of time to get out of debt. In fact, I think this is some of the best advice that you will ever get. We live in an instant gratification culture. This can be a blessing and a curse, but it ends up costing us in a lot of different ways. You see, you might love getting things quickly. It’s fun to know that you can stick something into a microwave and come out o the other side with cooked food. But what about when you are honestly trying to get out of debt? The microwave approach doesn’t really work so well.

Yet this is the dominant approach that many people take. They think that they’re going to stick their debts in a microwave, turn on the timer, and they will come out with their debts cooked down to a manageable size. It really doesn’t work that way.

Instead, you’re going to have to develop the discipline that comes from truly focusing on the things that matter to you. You are going to have to dig in deep and try to figure out where you can honestly go with your finances. You don’t want to just give up and figure that there’s nothing else that can be honestly done. You are just going to need to ensure that you can keep a steady eye on everything that ultimately matters to you.

Coming out with a solid plan can be hard, but who says that you have to work through it alone? There are now organizations that will be more than happy to give you some confidential debt counseling. Some people have a hard time opening up to their friends. I know I was in that category — the idea of my friends knowing exactly who I owed and when was utterly exhausting. I didn’t want to tell anyone. I wanted to just hide my face for life!

You get to a point where you know what you need to do. Sometimes it means that you aren’t going to be able to live the same lifestyle as your friends. I used to see a lot of my friends from university go out and get really nice cars. Did that mean they could afford them? No, not at all — it simply meant that they had a nice car and I did not.

There’s nothing wrong with admitting that you cannot afford certain things. However, many people feel that if you are telling them that they cannot afford something, you’re essentially saying that something is wrong with them. That’s not what I am trying to tell you at all.

All I’m saying is that you need to be kind to yourself. It’s going to be tempting to blame yourself and get angry. Responsibility really isn’t blame — it’s just realizing that you have to take different steps to solve the problem.

Good luck out there, and don’t forget to comment to me if you have any questions or concerns! ~Ellie

Are You Financially Prepared to Have a Baby

A baby truly does change everything, but that doesn’t mean that you have to give up on what plans you have in life. A lot of people look at how to prepare for a baby. In many ways, you really don’t get to prepare for a baby. You kind of have to just take everything the way it comes, hope for the best, and know that even if you feel that you’re not ready, you’re still in great company. Many parents, my parents included, didn’t feel ready to have a baby. So I’ll go into some of the things that I had to think about as I was preparing to be ready financially to have a baby.

The first thing I did was look at my budget. In the past, I had been turning to one day payday loans because they could be paid out to me quickly and I knew my paychecks would cover the fees and everything else. Things were tight back then and I just couldn’t wait to payday to take care of all of the things that felt like emergencies. Sometimes I just wanted to be able to catch a certain sale. No matter what your reason for getting these loans really is, you have to honestly make sure that you’re able to get the things that really matter to you. The more planning that you can do into getting what you’re looking for done quickly, the less likely it is that you will have to turn to any type of financial booster at all. It’s going to be up to you though so make sure that you keep your eyes peeled for the best information possible.

What I’ve learned is that when it comes to a baby, you also want to look at the long term needs. Are you going to pay for your child’s education? What about sending them off to interesting camps? You want to have enough money in your budget to take care of these things without getting bogged down or starting to feel lost and hopeless. There’s no reason to feel hopeless at all. It is quite possible to get everything that you need without stressing out about anything in life.

You want to remember that children grow over time. There’s nothing that says that you have to have everything set up right away. Even if you don’t have enough money to buy everything that they need right at the beginning, you might be surprised at how many mums actually give you things. My friends all offered to give me the things that they couldn’t use anymore. Children grow up fast, and when you are ready to move on, you’ll be able to trade for even more things to help your children grow up just right.

Read up on how to keep your children from getting sick as much, and make sure that you invest in not only health insurance but also life insurance. Life insurance is something that’s hard to discuss, but it could really save your family if something happened to you or your spouse.

Are you ready to step into the wide world of raising a child? You might feel like there’s just not way to prepare, even if you saved all of the money in the world. It’s okay to feel scared — if this is something that you really want to do, you will be just fine at all. Check it out today!

Talking To Your Child About Money in a Troubled Economy

I don’t have children yet. There, I said it — I don’t have children yet, but I’m about to talk to you about children. I am a proud auntie and find that my nieces and nephews benefit from my advice, so I hope that you won’t write me off either.

One of the biggest things on everyone’s mind right now is definitely the economy, and that’s not necessarily a bad thing. I think that art of the reason why we’re in such a mess now is that we never really took time to educate ourselves on finance — we let other people have that information. We decided that other people were going to be able to handle our money better than we could.

Now that dream is gone, and we’re left making sure that we can pick up the pieces and start over. So, where do you really focus your time? You have to make sure that you’re looking into things from the perspective of teaching your children the ins and outs of personal finance.

A troubled economy can cloud the conversation. You don’t want your children to grow up fearing money, or thinking it it’s something that they will never, ever have in their lives. That’s just not the type of lesson that you want to bring to your children at all. It would be a lot smarter to tell them that money is neutral. It’s what we do with money that makes the difference. If we invest in our education, is that a bad thing? No! You want to get the most that you can out of the process of going to school so that you can get a good job.

What about if you are speaking to younger children? Getting them to understand that money has a purpose may be a bit different, but it’s still something that you need to do. When you’re going to the grocery store, let them help you find what costs least. That gets them using the lesson they learned in school to really give you the school on things from a financial standpoint. You can even have them start calculating how much things are separately — 2 pack, 4 pack, 6 pack, etc.

The more you make money sound like an everyday thing, the more it will actually be an everyday thing in the eyes of your children. Keeping the lines of communication open will make it a lot easier to actually handle your finances — there’s no waiting, no idea that you’re not going to be able to take care of the things that matter to you. It’s just a matter of looking at things from the right perspective and pushing forward. Don’t overload your child with information and they will certainly be just fine!

How to Financially Deal With Emergencies – Without Losing It!

Emergencies are something that can be really tough to deal with. I’ve had my fair share of emergencies, so I wanted to talk about how to deal with them financially.

First and foremost, if you have savings — don’t be afraid to use it! Even when I had a savings account I always felt like it would be the end of the world if I actually tapped this account. However, what you really want to get here is that there’s no shame in using the resources that are at your disposal. If you weren’t using your savings wisely that would definitely be one thing but what about when you honestly want to just take care of all of the problems once and for all?

Now, if you don’t have savings you might feel like you have no options. If you’ve already talked to friends and family and they really have nothing else to offer you, then you really need to make sure that you start thinking about payday loans.

There are a lot of people that are very much against payday loans, but we think that there’s nothing wrong at all with getting a good payday loan under your belt. It certainly can’t hurt anything when you look at the consequences of not taking action. A lot of people talk endlessly about fees, but I know when I really needed the money — there was no getting around it. I didn’t have any choice but to dig in deep and get the job done. I couldn’t sit and complain about my problems and or hope that someone would save me from them — I had to take matters into my own hands for good. That’s the way you have to think about it.

I definitely recommend one day payday loans for your convenience, because you will have the best chance at actually taking charge of your financial situation quickly. If you go with other types of payday loans, you’ll have to wait a little longer for them.

I’m a pretty impatient person, so I don’t like to wait very long for emergency cash.

The biggest thing you can do after an emergency is always look back at your emergency plan. I didn’t have one, so after I survived the first financial emergency, I realized that I needed to keep solving them in a systematic and logical manner. No, this is not something that your friends are probably talking about, but it could save your life someday.

Keeping all of this into perspective, it’s equally important to realize that an emergency doesn’t have to be the end of the world for you. Every time I realized that I was taking something too hard, I corrected course and stopped blaming myself for every emergency and problem. I wanted to be a better person, and I eventually became the financially responsible person that has a large and fulfilling life. It’s where I want to be — do you know where you want to be? Figure it out, and you’ll never look at emergencies the same way again!