Seven Useful Tips for Borrowing Money

Many people borrow money to help tide them over in tough economic times and though doing so should not be seen with the fear and controversy that it often is; it should always be approached having been carefully planned and considered. By knowing how best to go about it, you can eliminate the risks associated with borrowing money and pay it off without spiraling into debt.

  • Shop around: There are so many different lenders that offer loans and credit cards to consumers and it is important you find the one that is right for you. By taking the time to find the best interest rates and most reasonable monthly repayments, you immediately give yourself a better chance of remaining in control. Considering that you will likely spend months - if not years - paying off the loan, that extra bit of time weighing up your options is definitely worth it.
  • Total costs: The amount you borrow will not be the amount you pay back; loans are never that simple. Interest rates and insurance can significantly boost your bill, especially if the money is being taken out over a long period of time and so you should always calculate exactly how much you will have to pay back before you agree to any deal; it is important you make sure you will be able to afford the repayments if you want to avoid falling into debt.
  • Multiple loans: At the time is can often seem like a good idea to borrow money to help pay off existing debts but this is a costly trap that will more than likely worsen your initial problem. The same goes for credit cards; pay off one before you take out another and start building up additional debts on it.
  • PPI: Payment Protection Insurance (PPI) is designed to ensure the continuation of repayments should you become unable to work. In many cases however, it is mis-sold, fails to provide adequate cover or provides cover that already comes from an existing policy. Always be sure you aren’t taking on more expenses than you need to.
  • Know your loans: You would be wrong to think that a loan is a loan and it is as simple as that, as there are in-fact several different types available to consumers. The biggest difference you must know is that between a secured and an unsecured loan. With an unsecured loan, cash is the only thing involved in the borrowing process and the longer you fail to make repayments, the more money you will owe your lender. With a secured loan however, the money is taken out with your belongings acting as a type of insurance. This means that if you fail to repay the money on time, you could lose the likes of your car or even your home.
  • Interest free: You may come across loans that are ‘interest free’ but be wary as these are often only interest free for a limited amount of time before the fee starts rocketing at an alarming rate. Always read the small print and if a deal seems too good to be true then chances are it is.
  • Loan sharks: People often turn to loan sharks or pay-day loan companies when they need a smaller amount of money quickly to tide them over. These come with eye-wateringly high interest rates however and in almost all cases, simply make the situation far worse, increasing the pressure and driving people to even more drastic measures to pay off their debts.

Learn Forex For Better Investments

Forex, which stands for foreign exchange, is a market that lots of investors have turned to in order to make money. However, understanding how foreign exchange markets work is the first key to making money by investing in them.

So How Does Forex Work?

At any given time, one currency will be worth more than another. For instance, the exchange rate of the dollar to the peso, or to the yen, tends to be one to a great deal more than one. However, the exact ratio of that exchange changes on a nearly daily basis. The goal for a Forex investor is to change a more valuable currency into a less valuable one at a high rate of exchange, and then when that rate changes and the new currency becomes more valuable, to change it back. Thus a profit is made by manipulating the numbers.

The basic idea is the same as buying stocks. You invest in them when they aren't valuable, and then when the value climbs, you sell it off. Or in the case of Forex investments, change the currency back into another variety.

What Makes the Values Change?

Experienced Forex traders know the signs to look for when it comes time to alter and invest in a currency. For instance, if a country is experiencing civil war, upheaval, or is making politically unpopular moves and is being sanctioned, then its currency is likely going to go down in value. Countries that are experiencing natural disasters too, tend to take hits in the value of their currencies. On the other hand countries that expand into growing markets, and who have successfully courted foreign investment, tend to go up in value. The key to Forex is realizing which currency is going to rise and getting money changed over sooner.  You can also start with a forex demo account. Many broker on the market have this option for beginner.

Unwarranted Cash Crunch

Liquidity crunch can happen to anyone and the worst part of it is that most of the times you find yourself in a difficult situation at such a time. The perfect solution to such a situation is to apply for a personal loan. A personal loan from lending organizations comes free of any limitations on the nature of expenditure. It can be used to pay college fees as well as to fix repairs in your home or even go on a holiday.

Why Personal Loans?

These kinds of loans are tailor made to meet different eventualities and the amount sanctioned is based on the repayment capacity of the borrower. This is why the salary slip is a must and the recovery of the loan amount is through fixed Equated Monthly Installments (EMI). The interests on such loans are slightly high and can be based on a fixed rate of interest or a floating rate of interest. In the later case the interest is calculated on a diminishing balance. To make it easier for the borrower as well as ensure that it does not turn into a bad debt, auto debit of the monthly installment is available. The interest rate can vary depending upon the amount borrowed as well as the tenure.

Defaulting even on one monthly installment can attract a heavy interest and penalty. This is why maintaining required balance in the account is very essential. Such loans are for shorter terms with the flexibility to choose a suitable tenure as well. The maximum tenure in most of the cases ranges from 5 to 7 years.

Such loans are available without any collateral or guarantor through a hassle free application procedure. Application forms for the loans need to be duly filled and submitted with the necessary documents for verification before the loan can be approved within a day. Normally lenders offer up to four times the monthly salary drawn as a loan to meet different eventualities.

Personal Loans In Singapore

Singapore personal loans scenario is no different. People residing here also find the need for such monetary help, as the cost of living in this city nation is high. To cater to their demands there are personal loans available from banking and non-banking organizations. Such cash made available in your bank account can be used for any purpose and the loan recovery procedure is through EMI with the option of fixed as well as floating rate of interest.

Such loans can be applied by visiting the office of the lender or even through online application procedure. The documents required mainly include income documents to show the monthly income, tax statement and CPF contribution statement. This is applicable to permanent residents of Singapore. Foreigners can also avail such loans, but the amount that can be borrowed depends on the salary.

The availability of such personal loans without much fuss helps overcome certain difficult situations without having to face any embarrassments. The fixed repayment plan also ensures that the credit rating of the individual is not tarnished. With not need for collateral or guarantor required to get these loans, it is the best option available for people with a steady income to meet emergencies.

The Consequences of Poor Payment Management

When it comes to the kind of essential duties and undertakings that find themselves firmly on the back burner, chances are none are overlooked and neglected quite to the extent of cash and payment management. When it comes to smaller and newer businesses in particular, it can always seem as though there are thousands of more important things to think about and more profitable areas to focus on for the benefit of the business…which in all probability is indeed the case. However, to overlook the importance of payment management is to risk errors and omissions creeping into the equation, which can quickly set the business as a whole on the road to disaster.

True, it’s only natural to think that poor bookkeeping services hold little threat other than mild inconvenience, but in reality the consequences of poor payment management can be far more severe:

Wasted Time

Right off the bat, it pretty much goes without saying that a poor managed payment management system will take vastly longer to look after and restore order to than on what’s kept flawlessly up to date and accurate at all times. Treasury management can feel like a waste of time to some, but not nearly on the same level as the time wasted by wrestling with a system that has already ended up well and truly out of control.

Wasted Money

Business owners are often motivated to remain with their tired and ineffective payment management systems as a means by which to save on the costs of outsourcing. Sadly, poor payment management will inevitably lead to errors which mean unnecessary expense and potential loss of income. From incoming payments never arriving to late outgoing payments bringing fines and generally paying over the odds for something that isn't working, this is one area in which early savings really don’t add up to much in the long run.

Strained Ties

Another fact that often fails to register in the minds of so many business owners is the fact that nobody the world over responds kindly to being paid late, or not being paid at all. This means that every time a SEPA transfer or direct debit is made late due to an ineffective cash management system being in effect, the higher the chances of straining relationships and ties with peers, employees, suppliers and creditors – all of whom you need to be 100% on your side in order to get where you need to be. And sadly, once the impression has been given of a company that breaks its word in financial matters, winning anyone back over can be the mother of all asks…if possible at all.

Legal Complications

And right at the top-end of the spectrum, there is every chance that poorly managed finances can land a business owner neck-deep in the proverbial in a legal sense. From broken contractual obligations to unpaid taxes and so on and so forth, maintain a poorly run treasury and you run the very real risk of running afoul of the law without every even realizing it…until it is too late, of course.

Investment Protection Through Personal Gains

If you have a selection of business investments, then you will want to make sure that they are safe. There are many ways that you can do this, but it is possible that wise personal investments can help you to do this.
Life insurance
Having life insurance that will protect you if you are not able to work can be very important. This is useful because it means that you will not have to turn to your investments to help you financially. With no other income, it can be tempting to cash them in so that you can afford to live. In fact you may have no other choice and this could lead to future problems where you will no longer have any money in business investments.
Health Insurance
If you have no health insurance and need medical care, then you will need to find the money to pay for it. This can mean that you will have to turn to places that you have money such as your business investments and take money from there. You may find that it is the only way you can pay as medical costs can be very high.
Savings
Having savings can be extremely useful. You are able to use the money if you get emergencies to pay for or unexpected bills that need paying. It is something that everyone should have. However, if you do not have any savings, then you will need to find this money from somewhere else and using business investments can be where you may turn.
Debts
If you have debts then you could be putting your business investments at risk. Debts can be very expensive to pay back and you may find that you have to use your business investments to pay off the debt. Once you start getting in to debt, it can be very easy to build up more and more and then you may need serious help to get rid of them.
Therefore it is very important to make sure that you keep your personal finances in order so that you do not have to make choices that effect your business investments. Make sure that you have life insurance quoted so that if you are out of work you have a source of income. Have health insurance so that you do not need to pay out lots of money for medical expenses. Keep some savings behind you to cover any emergencies and do not get in to debt or else you may need to find money to pay it back.