Car Loans Online News
Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.
Sat, 08 March 2008
Frugal Shopping - How to Keep the Money You Earn
Frugal shopping can make your dollar go further and will help you to live within your means. When you implement these smart shopping tips, don't think of them as deprivation; instead think of your frugal shopping strategies as a challenge to fight the marketing strategies that separate you from your money.
How often have you thought, "If only I made more money?" When money is tight, it always feels like finding more money is the solution. While you do need to make a certain amount to meet your basic needs, beyond that, it's not so much how much you make, but how you spend what you make that determines your financial well-being.
Six Smart Shopping Tips to Keep More Money in Your Wallet
When you're shopping, be friendly to store staff and ask them if there are any sales coming up soon. Why buy a sweater for $40.00 today if it's going to be on sale for $20.00 tomorrow? Be friendly, ask about sales, and the staff will let you know how to save money at their store.
No one likes unwanted emails or random telemarketing calls, but if your favorite stores have an email or a calling list ask to be put on the list so you won't miss great bargains.
Shop around. It's easy to compare prices online, so frugal comparison shopping doesn't have to mean wasting time and gas driving from store to store. The money you'll save can be well worth a little time spent comparing prices online.
When you buy items on sale, make sure you actually get the sale price. Sometimes items will be marked down on the shelves, but the sale price hasn't been entered into the cash registers yet, so you'll be charged full price when you check out.
I'm amazed at how frequently this happens, particularly, it seems, at some large department stores. You will definitely save money if you watch your bill to ensure you’re charged the correct amount.
Don't take a shopping cart if you don't need one. Why do some stores make sure you can easily grab a shopping cart when you walk in the front doors? No, it's not good customer service, it's because you're more likely to buy more if you have a cart.
Without a cart, you're limited to buying what you can carry. With a cart it's easier to pick up several other items that you did not intend to buy. Frugal shopping is easier if you avoid using a shopping cart whenever possible; you'll drastically reduce the chance that you'll make impulse purchases.
Start at the back of department stores and work forward. The more often you pass an item, and the more items you pass, the more things you are likely to buy. If you start shopping at the front of the store and work your way back, you'll have more opportunities to be lured by an impulse purchase. If, on the other hand, you walk straight to the back of the store (don't stop to look at anything) and then start your shopping, you'll be lured by fewer impulse buys.
Don't let the lure of marketing deprive you of financial well-being and the ability to meet your larger financial goals. Implementing a few simple frugal shopping strategies will help you to get the best value for your dollar and avoid impulse purchases that drain your bank account.
Source: http://www.ezine-writer.com.au
Fri, 14 March 2008
Bad Credit Loan: Financial Help For Low Scorers
The number of people with bad credit history is increasing day by day. And once you attain this tag, it becomes impossible to wash this stain off. Any request for personal loan by people with bad credit was generally declined. But now bad credit loans are designed especially to meet the requirements of people having bad credit record.
Bad credit loans are crafted specifically to help those who have credit problems like CCJs, IVA, loan non repayment, arrears or defaults etc against their name. Now, with the help of this loan, they can meet their demands like home refurbishing, paying education fees, wedding expenses, paying off debts or buying a vehicle.
Bad credit loans can be availed in two forms, secured and unsecured. For secured bad credit loan one is required to pledge an asset as collateral. The amount derived is based on the equity value of collateral. One can avail an amount ranging from $ 5000 and $ 75000 with a repayment term of 5- 25 years.
Unsecured bad credit loans are collateral free. So those who don’t want to risk their asset can opt for unsecured loan type. But the interest rate charged is slightly higher in it. Unsecured options advance the amount ranging between $ 1000 and $25000 with a repayment term of 6 months- 10 years.
Various banks and financial institution are ready to lend bad credit loans provided you produce documents of your income and bank statements. This will satisfy the lender of your repaying ability. Many lucrative deals on the loan amount are available online also. Online dealing is comparatively faster and saves a lot of time.
With the help of bad credit loans, the people with credit problems can solve their troubles and can also improve their credit score by paying off the loan in time. To maintain a healthy credit score, borrower must ensure to repay the installments regularly.
By: Tom Dikkin
Sat, 22 March 2008
How to choose a Car Loan-Saurabh K Jain
Life without a car is unimaginable nowadays and car loans can come in very handy when you don't have enough money to buy a car. However, if you are not careful in selecting an easy online car loan or if you take a loan with a very high interest rate, you might find it difficult to make the repayments and end up sliding down on your credit score. Such a situation can easily be avoided, if you can negotiate a good deal with a dealer or a lender.
Essential Steps For Getting A Good Car Loan
The first step towards getting car loans should be a price negotiation with the salesman of the vehicle company or a dealer, especially if you wish to buy a used vehicle. The starting point in negotiating for a car loan is obviously the amount of the loan and this can only be determined if you are able to finalize the cost of the car. You'll have to use all your negotiating skills, as the salesmen are very smart. You can be in the driver's seat in the negotiations, if you have researched the true value of the car and compared the prices offered by other dealerships for similar cars. You should be able to stand firm on your offer and be prepared to walk off, if things do not move as desired by you.
Having negotiated the cost of the car and thus having formed the basis of the amount of the loan, you can look around for a car loan. You can start by finding out the terms being offered by the dealership in respect of the interest rate, the monthly payments and the duration of the loan. With this information, you can check other sources such as, the local credit unions and the banks in your area. The best place to look for a car loan is the Internet, as there are many online lenders who are vying with each other to get your business. You can apply to various genuine online lenders and then compare their rates, but be careful of scams.
With all the offers from dealerships, credit unions, banks and online lenders, you can start comparing them and you can decide which one would suit you the most in respect of lowest interest rate and flexible terms. However, before signing for any car loan, you must read the fine print of the agreement for any adverse hidden clauses.
Whether you are looking for old car loans, new car loans or car title loans, the most appropriate place for your search is the Internet. Sitting in the comfort of your home, you can browse through various websites of the online lenders and compare their offers with ease. With so much competition in the market, it should not be difficult for you to get the best rates and terms for car loans.
Car loans are essential if you don't have enough funds to buy a car, but it's necessary to look for new car loans with the minimum interest rate and flexible terms, so that you can make the auto loans repayments conveniently. Read on to learn more about how to choose an appropriate low interest car loan.
Thu, 03 April 2008
Own dream vehicle at low cost on taking Instant Auto Loan Online
By James Taylor
Buying a car or any vehicle is a requirement and not a luxury for most of the travelers. Owning an auto however requires lot of amount and it necessitates taking a loan. It would benefit the borrower more if the loan comes at easier terms and conditions. Also the loan should be approved instantly for immediate possession of the vehicle. Instant auto loan online comes true to the expectations of the borrower. One can finance any type of auto vehicle including car when opting for instant auto loan online.
Major attraction of instant auto loan online is that it is approved instantly and the loan amount comes to the borrowers account as early as it is expected. Since the borrower applies online for the loan, no paper work or documentation is required. All an applicant is supposed to do is give necessary information like his name, employment status, source of income, loan amount and term etc. This is enough for the online lender to approve instant auto loan online.
Instant auto loan online is made available in both secured and unsecured versions considering different financial backgrounds. For secured instant auto loan online, borrower is required to offer any property as collateral with the lender. Home, jewelry, valuable papers etc may consist of the collateral. On the strength of the collateral any amount can be borrowed at lower interest rate. Though like any other secured loan, secured instant auto loan online comes at lower interest rate but because of applying online, the interest rate of different lenders can be compared and reduced rate is availed. The secured loan can be returned back in convenient repayment duration of 5 to 25 years.
Unsecured instant auto loan online is often opted for by tenant or non-homeowners who usually do not own property to take loan against. Thus they are free of any worry about loosing property for a loan.
However they should produce proof of income source, financial position and repayment capacity to ensure lender about safe return of the loan. The unsecured loan comes at a little higher interest rate and loan amount may be smaller for a shorter repayment period.Even if you are labeled bad credit, instant auto loan online is there for asking but you should assure the lender regarding your repayment capacity and intentions to pay off the loan in time.
When applying online, don’t forget to compare different loan providers for easier terms-conditions including interest rate. Online lenders do not take any fee on application processing and on offering relevant details. This lowers cost availing loan.
Instant auto loan online provides opportunity for owning your dream vehicle at lower interest rate and overall low cost. Pay off the loan in time to avoid any debt burden,
Summary: Instant auto loan online offers finance for owning dream vehicle at lower interest rate and at low cost. The loan amount comes to the borrower instantly because of its hassle free approval. The loan is offered in both secured and unsecured versions. The article makes borrowers more apprised about key features of the loan.
Sun, 13 April 2008
Unsecured Personal Loans
Nobody wants to face a financially difficult situation and everyone prepares for it, at least they would. Assets, which belong to people are made for help in hard times but it is not suitable to pledge these assets for any big or small needs with the lenders. So it is better to borrow money through unsecured personal loans.
This kind of loans help the borrowers in getting the finances for their needs without the obligation of pledging any asset with the lender as collateral. This way the borrowers can lend money without engaging any risk to their assets. Also, this feature makes money available through these loans to people who do not have any assets like tenants and non-homeowners as they do not possess any fixed assets to pledge with the lenders.
By means of Unsecured personal loans, the borrowers can lend money for their personal needs like educational funding, car purchase, home improvement, debt consolidation, wedding expenses etc. These needs can be fulfilled easily with the collateral free money available to the borrower.
The borrower is should repay the loan in previously set terms but short terms, as these loans are short term due to their collateral-free nature. Also, because of this the rate of interest of these loans is slightly higher than the other loans. But it becomes difficult for borrowers of all sorts to afford these loans. So they are suggested to research for good low rate deals before deciding on one deal.
Borrowers with a bad credit history can also lend these loans. Rates are also higher for them to compensate for the risk involved with the loans. So the borrowers should research for a loan deal. This research should be taken up by the borrowers through the online mode. In the online market, stiff competition exists which helps in getting lower rates.
Unsecured personal loans make it quite hassle-free for the borrowers and risk-free too that they take up money and fulfill their needs.
Source:GuarantorLoans.com
Sun, 20 April 2008
Getting That Car Loan: Simple Interest Is The Best
By Pete Lance
So here’s the situation: you are buying a car but you don’t know what type of auto loan offers you should go for. What should you go for?
The answer is simple enough: get a simple interest loan.
What is a simple interest loan anyway?
A simple interest loan is a loan where you pay interest only on the original principal of the loan.
The good thing is, 90% of all auto loan offers are simple interest loans, although there are some lenders who are pushing loans that are not. You should never agree to an auto loan that is not a simple interest loan.
The second thing you DO NOT want on your auto loan is pre-payment penalties. A loan without pre-payment penalties means that the lender will not charge you an extra fee if you pay the loan off early either through refinancing or other means.
Remember that it is always easiest, and refinancing will save you the most money, when a simple interest auto loan with no prepayment penalties is refinanced with another simple interest auto loan at a lower interest rate.
Some lenders offer auto loans that are known as pre-computer loans. Sub prime lenders will often target high risk borrowers with pre-computed auto loans, and some used car dealers might push this type of auto loan financing.
If you sign up for this type of loan, you are legally committed to paying for the full principal balance of the loan as well as the total amount of all interest that would accrue over the life of the loan.
Furthermore, if you pay off your pre-computed auto loan early, the lender often uses an outdated and expensive formula known as the rule of 78s to make you pay a large sum of money for paying off the loan early.
Never go for this type of loans.
Sometimes, the best advice is the hold out for the best offer. If the first lender does not offer a simple interest auto loan with no pre-payment penalties at a reasonable and competitive interest, find another lender who will give you a better price. There are many lenders who are eager to compete for your auto loan financing.
The world has become so small it's a buyer's market. Check out local banks, auto dealers and online resources for the best interest rates with the fewest fees. By thoroughly investigating all of your options, you will definitely get a loan that is perfect for you!
Sat, 17 May 2008
Almost a million second-hand car loans
Almost a million Britons are set to take out a second-hand car loan in the next six months, but could be paying too much.
New figures from Sainsbury's Bank show 5.5 million UK residents are planning to buy a second-hand car in the coming months, with one in six (931,600 people) taking out a car loan to fund their purchase.
However, while almost a million people are planning on taking out a car loan, they are planning to pay less for their new motor.
In the six months to the end of August Britons are planning to spend an average of £4,056 on buying a new car - considerably less than the £5,018 they were planning to spend on second-hand cars in the previous six months.
"Our findings show that people are anticipating spending less on their second-hand car purchase compared with six months ago, so it's important that they remember to haggle when negotiating any car purchase to secure the best deal," said Steven Baillie, Sainsbury's loans manager.
Source:
http://www.myfinances.co.uk/news/loans/personal-loan/
almost-million-second-hand-car-loans-$473453.htm
Thu, 29 May 2008
18 Personal Loan Tips For Intending Borrowers
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.
Avoid unsecured loans if possible
Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.
Be honest in loan applications
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Can't get a standard loan? There are alternatives
If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.
Check your statements for errors
There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.
Consider smaller lenders too
When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.
Do you have to take out a personal loan at all?
Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!
Do you qualify for a 'relationship discount'?
Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.
Don't just take the dealer finance
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Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.
Don't make multiple applications
Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.
Don't rely solely on comparison rates
All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.
Have the right information when applying
What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.
Personal lease applications will require:
· proof of current employment
· income details or tax returns
Business lease financing requires more detailed information and may include your:
· balance sheet
· tax returns
· cash flow projections
· business plan
Confirm with the lender what you will need before the interview.
Have you considered a credit card?
Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.
Honesty counts
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Keep accurate records
Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.
Know what interest rate applies
When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.
Look beyond the banks
Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.
Try lenders with whom you are a regular customer
Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.
Understand what's on offer
Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?
Source: http://www.money-tips.com.au/
Thu, 12 June 2008
9 Ways to Stretch Your Income
Here are some great tips for stretching every dollar.
1. Save a penny, keep a penny.
Dump your pocket change into a jar each night.
Invest it in a high-interest bearing account at the end of each month.
Woman's Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.
Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.
2. Use your computer.
You can save big money by shopping online, if you know where to look.
Do a Google search for coupon codes before you start shopping from online merchants.
You can also purchase a local coupon book for offline purchases (The Entertainment Book, for example.) I use mine all the time for groceries, oil changes, and dining out.
3. Write letters.
Whether you love the product or hate it, write the manufacturer a letter.
A company that receives a complaint is bound to make amends.
On the same token, many companies will acknowledge--and encourage--your satisfaction with coupons and discounts.
4. Shop smart.
Look at the grocery store ads before heading off to the store.
Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.
5. Ban impulse buying.
Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.
6. Watch out for "nickel and dime" expenses.
Those little snacks and coffee stops can easily add up to more than $500 per year.
7. Shop around.
Research purchases on the internet.
Before making a big online purchase, visit http://www.dealtime.com and http://www.mysimon.com.
8. Refinance your home.
Signing a few papers can save you big money on your mortgage payments. In fact, if you refinance and consolidate your debts into your home mortgage you'll find that your monthly outgoings can decrease dramatically.
It's really not as big a hassle as you might think.
Ask your friends and family for the name of a good mortgage broker
9. Examine credit card use.
If you're paying credit card debt, you're paying not just 17 percent more for your purchases than you need to, you're also missing out on the money that the sum could earn for you if you had invested it.
Try calling your credit card company and ask if there’s a way to lower your rate.
One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I'd made a long time ago.
The most important thing is to recognize that you control your finances. Empower yourself with smart spending.
Source:Susie Cortright
Mon, 16 June 2008
How Can I Get Discount Car Insurance and Cheap Auto Insurance?
As insurance rates climb nearly as fast as gas prices, more and more people are trying to find ways to save money with their vehicles. With a little investigation and a few phone calls, chances are you can find discounts that you never knew existed. So call around or search the web to find the best auto insurance discounts available from various companies. You never know what you might qualify for.
Increase Your Deductible
If you have the financial resources, it may also be wise to increase your deductible. This can often reduce your annual premium by ten to fifteen percent.
Payment Methods:
Some companies like to get the entire year’s worth of premiums in one lump sum. If you have the financial ability to do this, you may be eligible for a discount. If you can’t pay in one lump sum, see if there are discounts for electronic or direct payment from your checking account.
Additional Safety Features:
Choosing optional safety features on a new vehicle, or adding them to a used vehicle will save your money. Car alarms, anti-lock brakes, automatic seatbelts, side air bags, and any anti-theft devices may be beneficial.
Students and Schooling:
Nearly every insurance company offers the good student discount, which is available to full-time students that are averaging at least a B in school. There are also some companies that will give you benefits for continuing education, or taking defensive driving courses.
Infrequent Driver:
Logic says that the less time you spend behind a wheel, the less likely you are to have an accident. So, if you carpool, take public transportation, or ride your bicycle to work, check into the possibility of these discounts. Some companies will check your odometer yearly, and if you stay below a certain amount of miles, like 6,000, you could get a discount.
Have Good Credit
Surprisingly, a good credit history will also translate into lower insurance premiums. Studies have shown a correlation between credit history and driving records. Those with bad credit are considered to be less conscientious or less stable, and are therefore classified as higher risk drivers. People with stellar credit histories can reap the rewards of a lower insurance premium.
Housing and Garages:
The location where you live will also have a slight effect on your premium. For example, those who live in rural areas benefit from low crime rates and mild traffic and therefore cheaper premiums. If you live in the city try to lease garage space. This will lower your rates because your car will have less exposure to the elements…both natural and criminal.
Multi Policy Discount:
Once you have settled with a company that has favorable discounts, you might as well insure all your vehicles with them. Plus, look into moving your homeowners insurance to the company as well. Nearly every company offers multi-policy and multi-vehicle discounts.
Drive Carefully:
As technology and culture changes, there are new discounts and new charges offered all the time. Keep up to date on current trends, and research your policy each and every year. But perhaps the best discount is to always drive carefully. A clean driving record is one of the best ways to reduce your premium. Drive slow, drive defensive, don’t speed, and most of all, don’t drink and drive. You won’t just be saving money, you might be saving your life…
Source: http://www.carinsurancerates.com
Sun, 22 June 2008
Getting the Most Out of Your Bank
Having a bank that meets all of your financial needs is an asset that many people don't appreciate. If you have a bank that doesn't meet all of your needs, however, it's pretty easy to tell. In order to get the most out of your bank, you may need to investigate the services that your current bank offers, or you might have to find a new bank entirely that offers the services that you need.
Here are a few tips to help you to find out which financial services your bank offers, to help you find a new bank if your current bank simply doesn't offer the services to meet your needs, and to help you take advantage of special offers and account features so as to get the most out of your banking experience.
Explore the Options Your Bank Offers
The first thing that you should do in order to make sure that you're getting the most out of your bank is to explore the features that your bank offers in order to make sure that they meet your needs. Request information from your local branch office on all of the account options and features that the bank currently offers, taking them home to read over them at your leisure and determine whether or not you're missing out on certain advanced account features.
When reading the information, be sure to look out for any common features that you've heard advertised to see if your bank currently offers them... you should also be on the lookout for any features that are offered free of charge that you currently do not use, or any that are offered free elsewhere that your bank currently charges for.
Shop Around to Find the Right Bank
Should the services that your bank offers not meet your expectations or needs, you might want to consider shopping around at other banks in the area in order to find a bank that does offer the features that you want. This doesn't mean that you should close your current accounts right away, or at all... many individuals will keep accounts at several different banks so as to keep their money separated for different purposes.
Request the account features that different banks offer, comparing them to each other and to your current bank, so as to find the local bank that best meets your current needs.
Take Advantage of Special Offers
Many banks will have special promotional offers for new customers, or have special deals that they offer current customers in appreciation of their continued business. In both cases the offer is usually a temporary one, as is the case with most promotional interest rates or special account features. However, even a temporary interest rate or promotional account feature can save you some money for the term of the promotion, so it's well worth the time to investigate the offer further to see if it's worth it.
You should be aware of services that are free during the promotional period and that are charged for later... if it's not a useful feature, you need to make sure that you cancel it before you begin to get charged for it.
Online Account Management
One useful tool that many people don't take full advantage of is online account access and account management. The online tools may allow you to check balances, transfer funds from one account to another, or even pay bills directly from your account... it largely depends upon your bank and the specific features that they offer.
Source:Bill Stone
Sun, 29 June 2008
Do You Work For Your Money Or Does Your Money Work For You ?
The Poor Cash Flow Pattern
In order to understand the three basic cash flow patterns, you must first understand the difference between an asset and a liability. When you stop working for money, an asset is something that will put money in your pocket every month. A liability is something that will take money out of your pocket every month. This idea touches on the difference between earned income and passive income.
The first basic cash flow pattern is the poor cash flow pattern. Before most people even learn about money they want things, and so they learn first to work FOR money. As their income is earned it is just as quickly spent on their list of wanted items. The poor cash flow pattern has earned income flowing in and entirely back out to expenses.
It does not matter if you have a sizeable income, because money does not make you rich or poor. Money is just a tool. It is how you are managing the tool (money) that determines whether you become rich or poor. Even with a substantial income you are still poor as long as your focus is only to earn your income and pay your expenses.
You may make $500,000 a year, you may have enough income to cover all of your expenses, but if you were to stop working for money you would quickly realize that you are poor, and the idea that you were not was just a temporary illusion.
The Middle-Class Cash Flow Pattern
Eventually people get tired of this routine and begin to gain better understanding and control over their expenses. Enough time spent focused on working for money may produce extra income in the way of a raise or a promotion.
Most people still have not spent any time to financially educate themselves, so they don't know what to do with the extra money. They don't have any ideas of their own about financing their retirement, either. The extra money is usually used to buy a newer car, a bigger house, and anything left over usually accumulates as savings. Eventually most are sold on putting the extra money into a portfolio for their retirement, usually consisting of mutual funds.
These purchases make life more comfortable, and so feel like assets...but they create an expense every month for a very long period of time. The misunderstanding is made worse by bankers who ask you to list your cars and home as assets against loans. By definition, these purchases are liabilities.
The Wealthy Cash Flow Pattern
A change of focus to passive income leads people down the path to a wealthy cash flow pattern. When you look at the pattern of the wealthy you may notice- they do not get their income from a job. Their cash flows in from assets.
Imagine spending your time figuring out a process that will automatically produce some income for you every month. Now imagine duplicating and improving upon that process until it automatically produces your ENTIRE income every month. Finally, you will stop working for money. That process is a business, and that income is a passive income.
From that point forward you will be financially independent. You will not work for money, you will have money working for you. It might take you 2, 3, or even 5 years to establish a system to that point, but once you do you can retire. Once you retire, you have all of your time to spend however you like.
This is the reason understanding the three basic cash flow patterns is so important. These patterns demonstrate the reason why you can become financially independent in just a few years working at a seven dollar an hour job. Your biggest obstacle in the beginning is controlling your expenses and changing your focus from earned income to passive income. Once you have become committed to these fundamental ideas, only persistence stands between you and great wealth.
Written by: Frank Hills
Mon, 07 July 2008
Good Debt Versus Bad Debt
Some people see debt as a curse, and other people see it as a friend. It can be used to make you miserable, or it can be used to make you wealthy beyond your wildest dreams. The trouble is, how do we know what is good and what is bad?
Well it basically boils down to this. Good debt puts money in your pocket after you have paid for the debt (interest), and bad debt takes money from your pocket on an ongoing basis. In todays society, the world has gone through an explosion in bad debt. In the United States for example, for every $1 a person earns, they spend $1.20. In Australia things are getting worse too. We spend $1.02 for every dollar earned. Back in the 1980's we would earn $1 and save 20c.
The single most influencing factor in this curse of bad debt is the credit card. It is so easy to get a credit card these days, and even school kids have them. Most people I know have several of them, and you know what, they max them all out. People get caught in this vicious circle of paying one card off with another, and still the interest bill compounds at an alarming rate.
It is not only credit cards that are doing the damage, it is also the ability to get three years interest free furniture and home appliances with no money down. This is a huge trap, and when people live beyond their means and do not have the means to pay back their debt in the given time they are hit with massive interest rates and so the cycle continues.
So that is bad debt, and I didn't even include cars, holidays and clothes, all charged up on your card! You get the picture.
Now onto good debt. Personally, I love good debt, and any wealthy person will tell you the same thing. With good debt you can purchase income producing assets that put cash in your pocket, even after the interest bill is paid. Some examples of this include property, shares and stocks, and your own business. It even includes things such as art, wine and other rare collectibles.
By leveraging other peoples money to buy such things, you are after a time able to put yourself into a fantastic financial position, and you can now begin to pay cash for those bad debt items like expensive clothes and exotic holidays.
When I was at school there was never any lessons on good and bad debt, and I'm pretty sure they still do not teach effective money and debt management. It is unfortunate that in a society such as ours, that the government does not teach this to every man, woman and child as it has a massive impact on our lives. Just look at the sub prime fallout in the States to see how people who overextended themselves are now really in trouble.
There is a way out if you are in bad debt, and there are resources out there to financially educate yourself before you do get into any trouble.
We only have ourselves to rely upon to shape our financial future, and the longer we leave it the harder it gets. Eradicate the bad debt from your lives, and begin to live without that heavy weight around your neck.
Written by:Clint Maher
Sat, 12 July 2008
Credit Secrets - What They Are Not Telling You
Credit plays a dual role in our society; sometimes a lifesaver, and at other times a murderer.
Trying to float above imminent economical disaster is a daily exercise for the majority.
So, credit companies often seem to be our rescuer, offering attractive interest rates, interest-free repayment periods and extended credit limits.
But, what they don't tell you at the time you apply for credit could be the knife edge you've been trying to avoid all along.
With the credit secrets they never disclose, you could be ignorantly heading for disaster
You can reduce your credit worthiness by applying for a lot of credit facilities: it's a fact.
The more credit you apply for, the more it's likely to reduce your credit rating.
The credit secret is that to the creditor, you're a high-risk customer who would spend easily, someone whom they can charge a higher interest rate from (it's usually clarified in the fine print that you don't tend to read).
They don't want you to pay the whole bill: yes, that's why they have a minimum monthly payment invoice.
The credit secret here is "the less you pay on a monthly basis, the more interest gets charged on your credit remainder."
In the end, you pay almost double the actual credit, because of the prolonged payments.
Low introductory interest rates don't last very long: they lure you with minimal interest rates, such as 4%, for the first six months or so. But, if you delay even one repayment, the interest goes up immediately.
The credit secret? Baiting you ... hook, line and sinker!
Additional fees are always added: if you think your credit repayments are subjected to a mere late payment fee, think again.
Credit cards are subjected to inactivity fees, overlimit fees and transaction fees, while other credit facilities carry additional fees calculated on overdrafts, failure to maintain a minimum balance and account closure.
Knowing these credit secrets will give you an advantage over the money sharks, and save you thousands of dollars over the years.
Written by:Taylor Leonard
Sun, 20 July 2008
No Credit Check Car Loans
No credit check car loans are considered secured loans by the experts, because in these loans the vehicle purchased is considered part of the loan's collateral. However, cars depreciate, so financial institutions need additional collateral to secure the car loan without a credit check.
When attempting to approve the lending of funds for a car loan, the bank inquires from the borrower the purpose for which he seeks the loan for the new car. Banks do not grant loans for each and every purpose--they try to ensure thereturn of their loan by granting loans for productive purposes. Loans are usually not advanced for speculative and unproductive purposes, like social functions, ceremonies or for the repayment of a prior loan. These purposes tend to be riskier and increase the chances the car loan will not be paid back making it a poor investment for the lender.
Banks try to use the principle of diversification of risk when lending for car loans. A prudent banker always tries to select the borrower very carefully and takes tangible assets as security to safeguard the money lent. Tangible assets help the banker feel safe when granting advances on the security of such assets, yet some risk is always involved with a loan of any type.
Banks are profit out to make profit. But a savvy consumer with really bad credit knows that there is pressure on the banks to make loans as that is how they make this profit. They are in the business of lending money to you, so in many cases they will do all they can to get you the money you need for your car loan if you can prove that it is prudent for the bank to do so.
It is important to remain confident no matter your credit situation, if the first lending institution does not approve your application, keep trying. There is a lender for every situation and your really bad credit will not prevent you from attaining a new car loan. You simply need to shop around to find the car loan offers that are out there that and the banks that will work with your bad credit situation.
Source:http://www.reallybadcreditoffers.com
Sat, 26 July 2008
Who wants to be a millionaire?
Australia now has more of them than Brazil or Spain. John Collett looks at the reasons why.Thanks to the resources boom, the ranks of Australia's millionaires swelled more quickly last year than in most other developed countries...
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The number of Australians with financial assets of at least $US1 million ($1.03 million), excluding the family home but including superannuation, rose 7.1 per cent to 172,000, according to a survey by Merrill Lynch and Capgemini.
Of the 71 countries surveyed, Australia ranked 10th by number of millionaires.
Australia has more millionaires than Brazil and Spain, despite those countries having much bigger populations. As expected, the US is still the richest country and is home to 3 million of the world's 10 million millionaires.
Yet the large emerging economies of China, India, Russia and Brazil are growing their ranks of millionaires much more quickly than countries with fully developed economies. China, which had 415,000 millionaires last year, is on the verge of overtaking Britain and its 495,000 millionaires.
However, the credit crunch and turmoil in world financial markets slowed the millionaire club's growth rate last year and is expected to affect this year as well.
Wealth in Australia has been generated in several ways, says Thomas Alexy, Merrill Lynch's head of global wealth in Australia. Certainly, the booming demand for commodities has helped, he says.
"But the wealth comes in a lot of shapes and forms."
Apart from the handful of lottery winners, the prerequisite for building wealth is either being successfully self-employed, having a job with a high income or receiving an inheritance.
Yet plenty squander their income without having much to show for it.
Those with discipline who get good advice and take full advantage of Australia's quite generous tax system for borrowing to invest tend to do the best, Alexy says.
He says successful long-term investors are those who preserve their capital with good asset allocation and "never try to hit the big home run".
Andrew Inwood, the founder of brandmanagement, which conducts market research for the financial services industry, estimates that one in four of Australia's millionaires was born overseas.
"Migrants with money used to be mostly from Europe but are now from Asia and even the Middle East and Africa," Inwood says.
He says another striking feature of Australia's millionaires is that about three-quarters own their own small or medium-sized businesses and more than 70 per cent are tertiary educated.
PATIENCE
Doug Turek, the founder of high-end financial planning firm Professional Wealth, says wealth is driven by age, income and a few habits or traits - the main one being patience.
"Barring a few dotcom or iron ore millionaires, it is very hard to accumulate assets quickly; you need time for these things to build. It doesn't necessarily matter if your investment focus is strictly shares or direct property, or a mix of those things or even building a business. The key is having a disciplined focus over a long period of time."
Turek has developed an online survey (www.wealthbenchmarkets.com.au) where people enter their financial details anonymously and in return are told how their wealth compares with others of the same age and income.
More than 90 per cent of the participants in the survey are male. "Males seem to be picking up higher income roles than females," Turek says.
"There is plenty of other research to show that women, because of their time out of the workforce and inequalities in roles and promotion, are not as wealthy as men."
However, Turek says the marked predominance of wealthy males in his online survey may be partly because men are more comfortable than females in sharing their financial information, even though it is given anonymously.
"It is a male-dominated wealthy world," he says.
One of the key determinants of wealth is the family situation. "Being together and not divorced is a very strong success indicator because of the tremendous financial costs of separation over a lifetime," Turek says. "If you have been divorced, your net worth will only grow to three-quarters of those who are not."
PENNY PINCHERS
Inwood, whose company recently conducted a focus group with wealthy people, says some millionaires enjoy an extravagant lifestyle but most are modest in their spending. They tend not to spend that much on clothes and holidays, and are generally "tight" with money but will spend on quality things.
Turek says working overseas is also good for building wealth. "We have found that those that have spent time working overseas have a higher net worth than those who have not.
"You can think of professionals who have worked for a law firm in London or for an investment bank. Then there are those who have grown up in another culture and economy, and have come to Australia as a wealthy migrant."
It is not only those on particularly high incomes that have become wealthy.
Inwood uses a lower threshold for the definition of a high-net-worth individual than many other researchers. His definition is those with assets of more than $450,000 outside of their homes and superannuation. Recent research by brandmanagement shows that about half of them earn less than $100,000 a year.
They are those in their 50s and 60s, the baby boomer generation who have enjoyed rising house prices during the 1990s and 2000s and have good savings and investment habits. Home ownership has given them a springboard to borrow and invest.
Now that house prices are much higher than when the baby boomers first got onto the property ladder, it remains to be seen whether younger generations will fare as well.
SOURCE: John Collett - The Age
Mon, 28 July 2008
7 Cash Flow Steps to a Healthy Budget
The word budget can strike fear into even the strongest of people. If there is one thing very few people are ready for when they leave the safety of home for the first time it is dealing with money. There are not too many people who even know how to balance their chequebook after they open their first chequeing account. So creating a budget can be a scary proposition for anyone who isn't good at keeping track of their money.
But if we look at a budget in a different light then maybe it will be easier to live with what it is. And all it is is a cash flow plan. All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around.
Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget. Start with a piece of paper and a pencil; you can save those fancy budgeting software packages for later.
1. Write down your monthly income. If you are a salaried worker this should be easy. If your income is not that steady then add up the past three months worth of income and average it by dividing by three. This will give you a good starting point.
2. Start writing down all your monthly expenses. Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.
3. Here's the scary part for most people. Subtract the expenses from the income and see what's left. You will either have a positive cash flow or negative cash flow. Unfortunately in this day of increasing debt most people have a negative cash flow.
4. Once you have your monthly cash flow laid out in front of you you can start assigning your money to your expenses. As you make those payments throughout the month write them down to see how your spending lines up with what you have budgeted for that particular item.
5. If you have a negative cash flow then you can start looking at everything you have written down and find areas where your spending may not be in the best interest of you financial goals. As you do this you can free up money for more important financial considerations.
6. The first time you do a cash flow plan it probably won't work out quite right. It normally takes about three months to get everything working right while you figure out where your money has been going every month. Be patient with your budget and before long it will start working and you will regain control of your money.
7. Once you are comfortable with your written budget and you have better control of where your money goes and what it does then consider investing in some budget software such as Quicken. It can make your cash flow plan much easier and with the added features like retirement and tax planning it can give you a solid financial future.
By using these 7 cash flow steps you can begin your budget quickly and easily. Only by taking back control of your money can you improve your financial future for you and your family.
Written by:Andrew Bicknell
Tue, 05 August 2008
Ten Ways to Thrive in Uncertain Economic Times
Even in the worst economic environments some people will be more successful and resilient than others. Why? Because some people simply have a better psychological relationship to earning and spending money. This allows them to make the most of the opportunities around them and avoid common mistakes.
If you want to weather uncertain economic times and build a strong wealth foundation, you need to have the best relationship with money you possibly can. Here are a few tips to help you do just that!
1) Study Success, Don't Focus on Failure.
Most of us know plenty of examples of people who do not make enough, save enough, or who use money poorly.
How many examples of prosperous, successful people can you easily call to mind?
Decide what true and healthy prosperity looks like to you.
Then interview people, watch the news, and collect examples until you have a list of 50 wealthy, admirable, and inspiring people. Write this list down.
When you feel discouraged or unmotivated - read your list.
You will notice just by doing this that you see more opportunity and you are able to impress your boss or close more sales without even trying hard.
2) If In Business for Yourself, Collect "No Thanks" Responses, Don't Try to Get Clients.
In a tough economy, we often get scared and push too hard.
Often this can make it harder to get sales.
Instead, make a game of how many calls you can make, free consultations you can offer, talks you can give, articles you can publish, how many ways you can improve your product or service, etc.
Assign yourself points for each activity. Play with someone else. When you both get enough points, go do something outrageous and fun.
When you focus on the "no" not the yes you get less discouraged and stay more consistently engaged- which is particularly important when you are trying to sell in a tough market.
3) If You Work for Others, Don't Try for a Raise or a Better Job.
Instead try to figure out how you can add more value and make more money for your company.
Make it a game - how much better can you do this month than last? Document your efforts and your results.
Then you will be in a good position to ask for a raise or to present your case to a better employer.
4) Be a Language Detective.
What are you and others around you really saying about money?
Do you talk about money struggle, how money can be a pitfall or the evil ways of the rich?
Do others around you talk that way?
Listen and learn, and then change the messages you speak and hear to support your new core beliefs.
You will feel better and others will notice the change too.
5) Forgive Yourself Unconditionally for Your Money Past.
Fear and negativity from past experiences will affect the unconscious signals you send out to others as well as your own confidence and self discipline around money.
Even if you are not aware, of it a bad attitude about money could be affecting your opportunity.
To start a serious change, create a forgiveness letter to yourself and read it aloud to yourself every night for 30 nights before going to sleep.
You may also wish to talk with a coach or therapist about issues that come up as a result. This will help clear your way psychologically for new abundance.
6) Stop Making Money a Secret.
Tell someone you love about your debt or your earning goals.
When you don't talk about what you make, what you owe, or what you spend, and you are afraid to ask others about their money - you increase the shame and confusion about it.
Challenge yourself to go talk to five people about money - ask and tell all and give yourself the gift of real world perspective.
7) Stop Moving the Goal Post for Your Projects.
Some people say they want to put $5000 in savings, but when that goal has been met, it quickly becomes "not enough."
Give yourself the room to appreciate what you have done and accomplished. Make a list of 50 "successes" you have had over the last six months and keep it handy.
This will help keep you motivated and moving. If you want to move on to bigger goals, make sure you know that they are separate goals and not extensions of previous ones.
8) Make Saving Money a Reward.
Whenever you do something wise or good, take one dollar and put it in a jar.
Let this positive energy stay in there and grow for six months to a year. Then take out your savings and invest it in something that will have a long-term impact on your happiness (for example: education or training, savings, investments or anything that will have a long-term impact on your net worth.)
9) Focus On Quality Not Price.
Try not to haggle very often. In many cases, this creates an unconscious belief in lack. Either a thing is worth the energy or money is being asked or it is not. If it is, give it willingly. If it is not, look and ask for higher quality or a more satisfying purchase - not lower price!
10) JUST DO IT!
Complete those tasks you know are undone and are nagging at you and draining your mental and emotional energy. You know you need to return those library books, call your aunt, move your 401k, change your insurance, or whatever your personal procrastination items are.
The more unfinished business we have the more impulse spending we tend to engage in. Unfinished business leaves us feeling drained and keeps us in a state of inaction and denial. Both things are bad for your money. You will find that when you complete (or consciously decide to take off your list) unfinished to-do tasks, your start making better money choices.
Experiment with these ten tips and you will end up BOTH spending less and earning more. And that after all is how wealth is built in ANY economy!
Written by: Mari Geasair
Mon, 11 August 2008
Best residual value cars – maintaining the resale value
With the recent jump in fuel prices, and speculation from some quarters that prices close to two dollars a litre are not out of the question in the near future, intelligent consumers are realising that residual value is an essential consideration when purchasing a new car.
It's common knowledge that a new car is not a good investment choice. As soon as you drive away from the dealership, thousands of dollars of value can be lost because your new car has now become second-hand. So how do you select a vehicle that will retain as much of its new car value as possible?
Size does matter
The days of the fuel-guzzling monster being the popular family car are long gone. Recent research by Redbook Australia has found that the lower purchase price of small cars, combined with lower running costs, has seen vehicles such as the Toyota Yaris and Mitsubishi Lancer top the list of cars which retain the most of their new car value.
The study compared the price of a new vehicle with its comparative resale price, three years down the track. Results indicated an overwhelming shift towards smaller vehicles, with larger passenger cars rapidly loosing the popularity they have enjoyed in recent decades.
Topping the survey list, and gaining the prestigious title of "the car likely to retain the most value overall" was the two litre, safety conscious Subaru Imprezza, retaining an impressive 62.9% of its new car value after three years.
Other small cars likely to retain significant percentages of their value include the Mitsubishi Lancer (56.9%), Toyota Yaris (56%) and Honda Civic (55.2%).
In comparison, the medium and large 'family' cars did not fare anywhere near as well with the highest honour going to the medium-sized Mazda 6, which only managed to retain 54.3% of its value over the three year period. The large car category was topped by the Chrysler 300c which retained just 46.1% of its new car value.
If you really need a car with more space, go for the Mitsubishi Lancer Wagon or Holden Astra Wagon, both of which scored percentages in the mid to high fifties. And if you truly desire a large car, try choosing a diesel or LPG equivalent.
Fuel choice
Enjoying an amazing surge of popularity, diesel cars are not only more economical to run than their petrol equivalents, they also retain their value longer. Diesel also offers the driver improved refinement and performance . Diesel has gained some popularity in Australia recently, and the trend looks set to continue.
LPG cars also enjoy economic advantages over petrol cars, due to substantial savings at the bowser. A recent decision by the Federal Government to delay the introduction of excise charges on LPG fuel until 2011 has been welcomed, seeing the residual value of LPG cars climb. Excise on LPG will be phased in slowly, seeing increases of 2.5 cents per litre each year for five years. Compared to an excise of 38 cents per litre for petrol and diesel cars, the proposed limit of 12.5 cents on LPG sees the attraction continuing long-term.
Colour
Neutral colours tend to retain their value better than the so-called fashionable colours which seem to change regularly. Today's popular colours will look outdated in two or three years time, radically reducing the resale vale of your car.
Area also plays a major role in popularity of car colour, with darker colours being more popular in cooler climates and light-coloured cars dominating in the warmer areas such as Queensland.
So, how do I choose?
To ensure maximum residual value for your new car after three, five or even ten years it's imperative that you consider all your options. Don't buy a car that's bigger than necessary and consider a diesel or LPG version for added economic benefits.
Finally, try to avoid the attraction of a lime-green or florescent yellow finish. It might be in vogue now but three years down the track the resale price will be substantially reduced.
Source: http://www.moneybuddy.com.au
Mon, 18 August 2008
Which Credit Card is Right for You
If you're in the market for a new credit card, there is a bewildering array of cards to choose from. There are even more incentive offers, so how can you decide on the card that is best for you? Here are some of the factors to consider.
What Kind Of Payer Are You?
The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card.
If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.
Taking An Interest
Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.
Compare Credit Cards
Want to know which card is right for you? Why not check out our credit card comparison page to view a table comparing features and benefits of some of the most popular cards. Click here.
Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.
Look At The Fees
There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.
Getting Some Cash Back
Some credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending – and spend it again with a variety of high street and online retailers.
Paying attention to these items will help you to choose a credit card that will match your financial situation.
Source:Amanda Cherry
Wed, 20 August 2008
Need a pay day loan ?
We all need a little fast cash from time to time. Pay day-Loans gives you instant access to the money you need during these tight times.
Regardless of how you manage your money there always seems to be a time when you need a little help with a payday loan. There are so many unexpected expenses that can occur that you can’t be expected to always have the money ready for them. Get your pay day loans that are available at any time to fill that financial gap until your next scheduled payday.
Source:http://www.payday-loans.net/
Sat, 23 August 2008
No Credit Check Car Loans
No credit check car loans are considered secured loans by the experts, because in these loans the vehicle purchased is considered part of the loan's collateral. However, cars depreciate, so financial institutions need additional collateral to secure the car loan without a credit check.
When attempting to approve the lending of funds for a car loan, the bank inquires from the borrower the purpose for which he seeks the loan for the new car. Banks do not grant loans for each and every purpose--they try to ensure thereturn of their loan by granting loans for productive purposes. Loans are usually not advanced for speculative and unproductive purposes, like social functions, ceremonies or for the repayment of a prior loan. These purposes tend to be riskier and increase the chances the car loan will not be paid back making it a poor investment for the lender.
Banks try to use the principle of diversification of risk when lending for car loans. A prudent banker always tries to select the borrower very carefully and takes tangible assets as security to safeguard the money lent. Tangible assets help the banker feel safe when granting advances on the security of such assets, yet some risk is always involved with a loan of any type.
Banks are profit out to make profit. But a savvy consumer with really bad credit knows that there is pressure on the banks to make loans as that is how they make this profit. They are in the business of lending money to you, so in many cases they will do all they can to get you the money you need for your car loan if you can prove that it is prudent for the bank to do so.
It is important to remain confident no matter your credit situation, if the first lending institution does not approve your application, keep trying. There is a lender for every situation and your really bad credit will not prevent you from attaining a new car loan. You simply need to shop around to find the car loan offers that are out there that and the banks that will work with your bad credit situation.
Source:ReallyBadCreditOffers.com,
Fri, 29 August 2008
Personal Loans: For Any Of Your Financial Needs
It is not always possible for every individual to have quick access to cash at the time when an urgent requirement arises. A personal loan is friendly and most suitable option to fulfill all your requirements especially for those that have fixed monthly salary. These loans are designed to provide funds to the people for their personal use.
Personal loans are a perfect option for those who are in need of a small amount of funds for a comparatively smaller time period. They provide aid to the borrowers from all financial troubles.
These loans can be extended to anyone in form of secured or unsecured personal loan. In case of a secured personal loan you are required to pledge your valuable assets such as house, automobile, real estate or any valuable documents as collateral against the loan amount. In case of secured personal loans, borrowers may apply for anything from £5000 to £75000 for a term of 5 to 25 years. If you want to have big loan amount, long repayment period and low rate of interest then secured personal loans will be an ideal option.
For the unsecured personal loans there is no need to pledge any collateral against the loan amount. Both homeowners and tenants can enjoy the benefits of unsecured personal loans. In case of unsecured personal loan a borrower can get an amount £1000 to £ 25000 for a term of 1 to 10 years. However, unsecured option takes lesser time in approval because of non evaluation of collateral.
The credit status, income, repayment ability and value of the collateral deposited are some important factors which decided the terms and conditions offered with the loan offer.
The applicant can use the amount for various purposes like marriage, education, sponsoring holidays, debt consolidation, making home improvements, purchase of car, purchase of durable goods and expansion of business. Personal loans are multipurpose; they cater with all your monetary demands. Thus, the personal loans offer freedom to people who want to get rid of their monetary problems.
By: Mary Jones
Thu, 11 September 2008
Car leasing
What's leasing all about?
Leasing is really just another form of borrowing to finance a car.
But unlike loan finance - where you take ownership of the car and offer it or something else as security to the lender – lease finance sees a leasing company take ownership and give you the use of the car under contract for a specified period.
Lease contracts
Upon signing your lease contract you agree to make regular monthly lease payments, keep appropriate insurance, pay any vehicle taxes or fees, and take good care of the vehicle.
Further, you agree that you'll keep the car for a specified period - typically two to five years - and you're expected to stick it out to the end of the lease contract.
At the end of the lease period, there is often an option to purchase your vehicle at a specified price.
Or you may be able to use the car as a trade-in on a new car.
Otherwise, the leasing company will expect the vehicle to be returned with no more than normal wear and tear.
You may have to pay them for any damage or extra mileage over and above a contract-specified limit.
Lease or buy?
Leasing may involve lower monthly payments than a car loan but this is often because you are only paying off a portion of the vehicle’s value, leaving a ‘residual’ amount at end of the lease period.
And at lease end, you will not own the car.
Leasing is often promoted as a cheaper way to finance a car because of the tax advantages it can bring for the self-employed or those who take out a novated lease through their employer.
This is not necessarily the case and really depends on how much mileage will be clocked up overall, what proportion is for work purposes, and what tax rate you are on.
Source: Financial Services Online
Sun, 21 September 2008
Car Loans: Hot finance tips for car buyers
Car Loans: If you're thinking of borrowing money to buy a car, boat or anything else for that matter, here are 19 red hot tips to make the process much, much easier.
1. Avoid unsecured car loans if possible
Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a car loan.
2. Be clear about car leasing
Leasing is really just another form of borrowing to finance a car. But unlike loan finance - where you take ownership of the car and offer it or something else as security to the lender – lease finance sees a leasing company take ownership and give you the use of the car under contract for a specified period.
3. Be honest in loan applications
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
4. Can't get a standard loan? There are alternatives
If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.
5. Check your statements for errors
There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.
6. Consider smaller lenders too
When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.
7. Do you have to take out a personal loan at all
Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative.
8. Do you qualify for a 'relationship discount'?
Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.
9. Don't just take the dealer finance
Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.
10. Don't make multiple applications
Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.
11. Don't rely solely on comparison rates
All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.
12. Have the right information when applying
What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.
Personal lease applications will require:
proof of current employment
income details or tax returns
Business lease financing requires more detailed information and may include your:
balance sheet
tax returns
cash flow projections
business plan
Confirm with the lender what you will need before the interview.
13. Have you considered a credit card?
Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.
14. Honesty counts
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
15. Keep accurate records
Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.
16. Know what interest rate applies
When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.
17. Look beyond the banks
Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.
18. Try lenders with whom you are a regular customer
Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.
19. Understand what's on offer
Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?
Source: Financial Services Online
Mon, 29 September 2008
Poor Credit Auto Loans-poor Credit Plays No Role In A Loan Anymore
Even if buying a car is the easiest thing, right now it is very expensive affair. Even in present circumstances not everybody can afford a car. This is a genuine problem being faced by millions of UK citizens and in fact citizens all over the world. The loans have become flexible and have increased the number of borrowers thus. People don’t leave the loan market without taking a minimum of two loans and repaying them becomes a headache and ultimately ends in poor credit. But then you can always own a car and enjoy the ride in spite of your credit. You just need to apply for the poor credit auto loans.
This loan is both secured and unsecured in nature depending on your choice. You might have to pay higher interest rate with the unsecured loans but you need not pledge any security for the loan. The secured poor credit auto loan requires you to pay a lower rate of interest but asks you to pledge collateral against the loan amount. You might have to pay a certain amount as down payment to get this loan. If you increase the amount of down payment you have the advantage of lowering you interest rate.
Poor credit auto loans can be applied for online as well as offline whichever suits you best. You just need to remember that online loans work better then offline loans as they help you get the amount transferred faster. You should be a salaried employee with a bank account and above 18 to be eligible for this loan. Residents of UK applying for this loan should be citizens of UK too to avail this loan. The research for loan is very necessary as without research you cannot get the perfect benefits of this loan.
By: Kalvin Jason
Mon, 06 October 2008
Things To Consider Before Getting Car Loans
The common thought is that getting a loan for your new car purchase is pretty easy and straightforward. However, it is not so. There are a few ostensibly minor variations which can be actually cost you a lot of money. Therefore, it is worthwhile checking various loan offers that may distinguish the desirability of one loan over another.
Finding a car loan with the right benefits and interest rate can be the difference between you buying the car of your dreams or simply a car that you can afford. So, it is important that you give yourself solid answers to these questions:
• What is your current financial situation?
• How you expect your finances to changeover in the coming years?
• Which car you want?
• Do you think it is likely that you will want to refinance at some time during the life of the car loan?
Before choosing a car loan, there are several things that should be kept in mind:
• Credit History ---- there are several lenders that may lend you money even if you have bad credit, but they may penalize you to pay high interest rates.
• Compare Rates ---- rates vary and there is no sense spending even a dollar more than you have to so get several quotes before you buy your car.
• Transfer Balances ---- be sure to look for hidden fees and transfer balances that my not be apparent at first glance.
• Required Information ---- lenders will require your financial information such as whether you own or rent a home, how much your payment is how much money you own on credit cards, etc.
• Pre-Payment Penalties ---- if such a penalty is built into the loan contract, the lender will penalize you, by charging a fee, if you pay the loan off early, whether through refinancing or by any other means. So, if you think it is likely you will want to refinance at some time during the life of the car loan, this is clearly an important consideration.
• Simple Interest Loan ---- never agree to a car loan that is not a simple interest loan.
Also, don’t forget to ask the following questions while looking for the right car loan:
• What interest rate can you offer?
• What is the allowed time of repayment?
• What down payment will you make?
Remember to go through the car loan contract thoroughly and be sure you understand each and every word. If you don't, take your time and ask any expert. But don't let anyone rush you through the process. In this way, you could get the car loan that is right for you now and in future too.
By: OmphalosXD Ricafort
Thu, 16 October 2008
Car Loans Tips - A Finance Ezi Article and Car Finance Guide
There are many things to consider in your purchase of a motor vehicle. There are many choices and it can be confusing to which vehicle to choose. Once you have decided on a car then to what price and possible trade in price to be negotiated. With most car purchases financed, it is also important to remember everything when you compare car finance packages.
Australian car loans can vary because of many factors.car finance direct from banks is quite often not the cheapest solution.
When time to purchase a new car, the next question is usually how you are going to pay for it rather than which car you are going to buy.
Financing your next car is a very important process, as you want to choose a car finance package most suitable to you. There can be many things to check including car loan interest rates, fees and charges, break fees if you paid it out earlier or if you can pay extra payments.
Remember to consider the time it will take to approve and settle your car loan. Does the car finance company suit your criteria to approve the finance?
You can have unsecured or secured car finance, which can be very different costs on your loan.It can be a requirement of the car finance company to have fully comprehensive car insurance on your car before and while you pay off your car loan.
Finance companies can assist to ensure you have a hassle free car purchase and help with additional resources like encumbrance checks to ensure that there are not any outstanding loans from the prior owner left against the motor vehicle. They could have available title checks to confirm the ownership of the car you are purchasing. Most will arrange clear transfer to seller of the amount financed on the car purchase.
Car loans, subject to the finance company's approval can be financed to the full cost of the purchase including on-road costs and taxes, car insurance, motor vehicle breakdown warranties, loan protection for death, disability and unemployment.
Older cars can be ok. Car loans can apply for all ages new and used depending on the car loan lender.
Finance structures can be flexible to suit your circumstance. Options to consider on your car loan could be delayed payment car loans so you first payment starts at a extended time into your finance contract, interest only payment options including balloon payments, extended finance terms and structured car finance payments to suit your life style or your work cash flow.
There are many motor finance options available for imported cars.
Commercial car finance options are available that could be suitable for business use. Some choices to consider that relate to business car financing are chattel mortgage vehicle finance, commercial hire purchase, car lease, operational car lease and fully maintained car lease packages. Be careful because the structure of your business car financing can affect your taxation claim.
Dealing through a reputable car loan broker can give you a choice of car finance lenders. It is important to know that you may get car loan rates and loan fees and charges cheaper than banks.
Tax information on loan structures in Australia can be found at http://www.ato.gov.au .
This article has been written by Finance Ezi, a leading car finance broker in Australia. You can visit Finance Ezi at www.financeezi.com.au
Mon, 20 October 2008
Secured Car Loan: Don’t Let Finance Smash Your Dream
Purchasing a car may be your ultimate desire but it is not easy for every individual to afford a car. Secured car loans have been designed to assist those borrowers who do not have sufficient funds to purchase their own car.
Secured car loans primarily aim at providing funds to the individuals who aim at purchasing new car. To apply for secured car loans, the borrower has to pledge collateral against the loan amount. The borrower can also pledge the new car itself as security. Thus this loan can be attained by both the homeowners as well as the tenants.
A secured car loan provides its borrowers an opportunity to avail a loan amount ranging from $3,000 - $100,000 for a period of 5 to 10 years. This amount may vary from car to car. Secured car loans help you to attain an amount equivalent to 90% to 100% of the value of the car. A borrower is required to make a down payment while purchasing a car. This amount varies with the negotiations between the lender and the borrower. There are some lenders that offer a substantial down payment in exchange for low monthly payments and finance charges.
If funds are not a problem for you, then you can opt for a new car loan. New car loans prove to be an ideal option for those whose preferences are budget, luxury, needs and convenience.
Whereas, used car financing is the perfect for those who are unable to purchase a new car in full. It is a much cheaper option as it allows you to own a car for an amount that suits your pocket. For used car financing a borrower must make sure that the car he desires to purchase should not be more than 5 years old. These loans are offered to the borrower on the basis of the loan amount, monthly income, credit score and repayment capacity.
A secured car loan is a combo of various benefits. It allows you to attain a lower interest rate, small down payment, favorable repayment period, flexible terms, huge amounts and easy monthly installments.
Source: By Expert Author: Pamella Scott
Wed, 29 October 2008
The Funnier Side of Insurance
The statements below are taken from actual insurance accident claims forms. They are real, true (you can't make up this kind of stuff). Read 'em and laugh and be glad it wasn't you.
The guy was all over the road. I had to swerve a number of times before I hit him.
A pedestrian hit me and went under my car.
I collided with a stationary truck coming the other way.
A truck backed through my windshield into my wife's face.
The other car collided with mine without giving warning of its intention.
My car was legally parked as it backed into another vehicle.
I started to slow down but the traffic was more stationary than I thought.
The accident occurred when I was attempting to bring my car out of a skid by steering it into the other vehicle.
I was unable to stop in time and my car crashed into the other vehicle. The driver and passengers then left immediately for a vacation with injuries.
The gentleman behind me struck me on the backside. He then went to rest in a bush with just his rear end showing.
The car in front of me stopped for a yellow light, so I had no choice but to hit him.
Coming home I drove into the wrong house and collided with a tree I don't have.
I told the police that I was not injured, but on removing my hat found that I had a fractured skull.
I pulled away from the side of the road, glanced at my mother-in-law and headed over the embankment.
I thought my window was down, but I found it was up when I put my head through it.
As I approached an intersection a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.
In an attempt to kill a fly, I drove into a telephone pole.
I saw two kangaroos having it off in the middle of the road. So I hit them, which caused me to ejaculate through the sunroof.
I was thrown from my car as it left the road. I was later found in a ditch by some stray cows.
I pulled in to the side of the road because there was smoke coming from under the hood. I realized there was a fire in the engine, so I took my dog and smothered it with a blanket.
No one was to blame for the accident but it would never have happened if the other driver had been alert.
I had been shopping for plants all day and was on my way home. As I reached an intersection a hedge sprang up, obscuring my vision and I did not see the other car.
The indirect cause of the accident was a little guy in a small car with a big mouth.
I was on the way to the doctor with rear end trouble when my universal joint gave way causing me to have an accident.
On approach to the traffic lights the car in front suddenly broke.
No witnesses would admit having seen the mishap until after it happened.
I had been learning to drive with power steering. I turned the wheel to what I thought was enough and found myself in a different direction going the opposite way.
The accident happened when the right front door of a car came round the corner without giving a signal.
I had been driving for forty years when I fell asleep at the wheel and had an accident.
An invisible car came out of nowhere, struck my car and vanished.
Source:Frank Hills
The accident happened because I had one eye on the truck in front, one eye on the pedestrian, and the other on the car behind.
Tue, 04 November 2008
Getting A New Car Loan In Today's Tight Economy
If you have excellent credit with a corresponding high credit score, like above 725, there is really not a good time or a bad time to get a new car loan. Dealers love to cater to people with high credit scores simply because the biggest hassle in moving cars off the dealer lot, getting the buyer credit approved, is no longer an issue and they can focus all their energies on selling the car and all the add-on features.
But with the current state of the economy, there are starting to be fewer and fewer people with credit scores at that level. In fact, many people have borderline credit scores or even downright poor credit, and that new car loan is likely to come at with a premium interest rate as well as a sizeable down payment requirement.
The reason is that banks and other lending institutions are starting to really cut back as much as possible on approving high risk loans. Whereas in past years a high risk loan would be approved with halfway decent credit, even with a high interest rate, the times are changing with the bailout of the mortgage industry, and lenders are starting to back away from new car loans that are considered risky by today's standards.
If your credit score is low or even marginal, you may still get your loan approved, but be prepared, mentally and financially, to put down a large down payment. The lender wants the buyer to have a certain amount of "equity interest" in the new car, and a hefty down payment ensures that that is exactly the case. When the buyer has a large stake of his own equity in the new car, it is far less likely that he will default or allow the car to be repossessed because of non-payment.
In today's lending market, can banks really afford to be that picky about what loans they approve? Yes and no. Yes they can because in today's economy, they feel like they have to be that picky to avoid the consumer defaulting and leaving them with the car. Although repossession is always an option, the bank does not want the car, because then they still need to invest resources to sell it and recoup the remainder of the failed loan. But then again, no because the lending market has always been lucrative, and less loans being approved means less income for the banks via the interest charges, which have been their cash cow and icing on the cake for so many years.
When shopping for a new can loan in today's market, you are going to need to think outside the box in a big way to get a decent rate and minimal down payment requirements. Check with local banks instead of the nationwide big names for one thing, since the local banks were not nearly as impacted by the mortgage fiasco.
Interestingly enough, very few people consider turning to the Internet to get a new car loan. This is strange because the Internet is one of the first places they turn when they are looking for pricing information and comparative feature analysis of the various cars they are considering. It should not be that much of a stretch to consider getting your new car loan via an Internet lender.
Why? These lenders have likely not been impacted by the mortgage crisis because they do not play in that ball game. Therefore they are still very financially stable and able to pass on very aggressive rates and terms to buyers, and that includes buyers with marginal or even bad credit.
The bottom line is that if you need a new car, shop for your financing before you settle on the car and negotiate the price. Having an approved loan in your hands gives you a tremendous amount of additional leverage in price negotiations with the dealer. Shop around for your best option but do not forget to comparison shop online for your new car loan, where you may be very pleasantly surprised.
Source:JON ARNOLD
Sat, 08 November 2008
Finding Affordable Car Loan Solutions
A car is becoming a necessity for us these days, due to the change in economic growth and development and as the income level of people has increased due to better job opportunities. So they have more choice available to suit their life style. Only point to be considered is the budget of the individual and his repayment capacity. A Car loan helps an individual to buy his dream car by repaying the amount monthly at specified interest rates. It can be taken for purchase of new car or a used car.
Car loans can be chosen through online lenders quickly and easily and the only main thing to be considered while getting loan is the applicant’s credit history. Even though many facilities have come up these days offering people everything at their door step, some people follow the traditional method of taking loan even now. Some of the few points to be considered while purchasing a car other than the car cost are License costs, Registration Costs, Tax Costs, Insurance Costs, Fuel Costs and Maintenance Costs.
Before going in for a particular loan the applicant has to compare and consider many aspects like car loan rates and terms of different car loans offered all over. This can be done by using the internet facility and familiarize the terms and conditions. This will help the applicant to get an appropriate loan according to his capacity and this is the first step for taking a loan. Better the individual can go in for low interest car loan with a good deal. So the applicant's first research will be on car loan companies, banks, credit unions or car dealers.
In some cases the loans do cover the insurance part, maintenance and warranties also. Some financiers do offer good lease plans where less amount of repayment can be made monthly. As many sources are available for availing car loans, the option is left to the buyer. He can opt for the loan which maximizes his benefits. Using an auto loan calculator will help the buyer to estimate his monthly repayments and this has become a very popular method to assess the value these days.
If the loan is for longer period then the interest paid for that will also be more. So the option is left to the buyer, he can decide on his repayment capacity. In case the buyer is ready to repay the loan before the time specified, he has to pay early repayment fees. So many hidden charges will be prevailing in different types of loans offered by different institutions. So it is necessary to read and understand their rules and regulations before going in for a loan.
Source:By Expert Author: Adam Boulton
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