The Basics of Personal Loans

In case you need money on the spot and you cannot simply find urgent cash anywhere, you might think of getting a personal loan. These are one of the most widely chosen options and people do not hesitate to get involved with an online lender or a bank in order for their money to enter their bank account fast and easily. What most people do not know, however, is that personal loans must be taken seriously and with much responsibility. Here are the basics of this type of loan that every potential borrower should know before getting one.

What Are Personal Loans?

Personal loans are credits given to each borrower who needs money quick for a personal event, such as weddings, holidays, anniversaries or other personal expenses. Because they are usually unsecured, they are based on the borrower’s ability to pay and integrity.

Regarding the interest rates of this type of loans, you must know that they come in many shapes, according to the borrower’s needs. They can be offered at a fixed rate, floating rate or flat rate. These are based on your credit repayment ability and history and can be anywhere between 14% and 25%.

Unlike long-term loans, these can be repaid in up to 5 years and therefore, you can negotiate the monthly fee you are able to offer each month, depending on your income. This is one of the advantages of personal loans and this is the reason so many people find it convenient.

Who Is Eligible for a Personal Loan?

Depending on the lender you choose to borrow this sum from, you should know that you must meet the eligibility criteria set by that specific institution. Usually, nearly all banks will accept salaried individuals, self-employed individuals, and self-employed professionals and will provide the right offer, depending on the monthly income and the ability to repay the sum. Nevertheless, there are some other factors that will make your application successful:

  • Age
  • Residence
  • Work experience
  • Repayment capacity
  • Past obligation
  • Credit history
  • Place of work

This means that you must provide the right documentation in order for the process to go as smoothly as possible. From your personal documents to your bank statements, you need to be prepared to prove that you are responsible enough to get the sum you need in order to solve your problems.

These are the basic information you need to know before applying for a personal loan. Whether you choose to do it online, on sites like www.micropaydayloans.com, or at your local bank, you should know that this type of loan is a responsibility you need to take seriously, as it may turn into a financial struggle later and destabilize your financial situation even more.

If all the things above are considered and you opt for this type of loan, you must know that this is a rather simple solution to obtain money easily and without waiting too much in order for your application to be successful.


Women hold a major share of student loan debt in the US – Any reasons behind this?

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As per a recent report, women are carrying around 2/3rds of the outstanding student loan debt of the nation. This alarming statistic has been given by a new report offered by the American Association of University Women which is an education advocacy group. In order to be sure about the statistics, 58% of the college students are women and hence it can be easily concluded why so many women are carrying student loan debt. Student loans are gradually becoming a burden as too many of them are pursuing their higher education.

At present, 7 among 10 students take resort to loans so that they could obtain their degree. The average student leaves school with $30,000 in debt and nearly 25% of them owe more than $100,000. Majority of the Americans are extremely burdened with educational loans and these loan amounts are way more than what they owe on car loans and credit cards.

Implications of student loan debt on the economy of the nation

As long as the conversation on student loan debt is concerned, this starts with definite demographics which are harder and tougher than others. Even though you might compare apples to apples, still women are carrying more debt individually. As per recent statistics, in the year 2016, the average woman left undergraduate education owed $22,620 as against $18,650 for men. Hence there is a huge difference between the two amounts. In fact, black women are taking on disproportionate debt amount and they’ve racked up $25,000 in the form of student loans to obtain bachelor’s degree.

Besides, women are more likely than men to have household responsibilities to balance their coursework and hence they might take too long to graduate. As they spent more time in school, this can lead to more and more loans.
Is there a wide wage gap too?



The fact that as compared to men, more women are borrowing in bigger amounts is troubling the women. It is also true that women earn 28% less as compared against their male counterparts outside school. This clearly implies that women will take longer than men to pay back their student loans and hence they can dig deeper into debt.

What do the personal finance experts have to say?

While the men are seen to pay back 14% of their debt annually, women can just pay off 10% of their debt, as per a recent study. 3 years post graduation, women have been seen to pay back less than a third of their debt and during the same time period, men has successfully paid back 40% of the entire amount. These numbers can clearly indicate the irony of education and the system that prevails in the country.

Education certainly plays the role of an equalizer within the nation and in case the rising tuition costs are setting an impact on few people, few more than others, this is now demotivating them to take any step. Hence, as long as you wish to pay off your student loan debts, make sure you are proactive about them.


Female finance executives are breaking all barriers – What you should know about them

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Contributed by Linda.

As per the 2017 World Economic Forum and their Global Gender Gap Report, it has been found out that female talent has been seen to be the most underutilized resources in the business sector. Particularly in industries like finance, this is even clearer. As the career level increases in the financial industry, the numbers of female representatives keep declining. Though it is a fact that 48% of the financial employees are female but sadly at the executive level, the figure is just 15%.

There are several women all over the world who are breaking all barriers while playing the roles of financial executives. Few people interviewed 7 such women who belonged to the Forbes Finance Council and they chose to take a look at their experiences and provided some valuable advice to others. Here are few things you should know about them.

#1: The gender gap is both an opportunity and a challenge

There isn’t any secret that the finance industry is entirely dominated by the male population. The finance industry is an ‘old-boys club’ and majority of the men have entered this industry because their college alumni or their father belonged to this industry. This is why women find it hard to break into this industry because there were never too many women who belonged to this periphery. One of the biggest professional challenges has been to break the mold of having a middle-aged man to earn some credibility but when you have the perfect outlook; all challenges will seem to be an opportunity.

#2: Finance is more than just money

Among the women who were interviewed, making a career in finance is not just paying your bills. The ultimate factor is in making the difference so that you can be differentiated in whatever you do and you’re not compared to a man. The financial leaders usually do whatever they want as their jobs affect the individuals in a positive note. This is the kind of support system which is needed and there are 3 quarters of Americans who find it extremely difficult to save money.

#3: A finance professional always keep learning

Besides altruism, the women also reported stimulation of their intellect as the main motivating factor in their careers. They also claimed that the financial markets are impacted by almost everything from politics to climate change and no two days seem to be alike in this market. The women who are interested in shaping their finance career should have broader understanding of the functions which are available. This way they can move down the path which intrigues them most.



#4: Women are the future of finance

Women these days aren’t happy to live with the status quo. They’re all finding their own business and they’re engaging in supporting brand new initiatives which can develop the business culture which works perfectly for them. With the popularity of fintech, both the fintech companies and financial institutions were all embracing the new narratives.

Therefore, if you’re a woman who is interested in the field of finance, you should learn the above listed things from the women who are involved in the financial industry.

 


Factors that Leave an Impact on the Borrowing Capacity

A few key factors tend to influence your borrowing capacity under all circumstances. It’s actually a single important factor that helps in determining whether you can own a home or not. Gaining a fair idea of how much you can borrow is of great help when you’re considering multiple properties simultaneously.

Once you gain a fair idea of your actually borrowing capacity, you’ll be able to adjust your property search accordingly. You may even achieve a few options that fall within your budget once you do your research. Many of you may simply be wondering about the factors that can prevent you from achieving the desired loan amount and the maximum amount that you can borrow.

Find out ways to enhance your chance of borrowing more:

Financial Commitments:

Prior to issuing a home loan, a lender has to determine the extent of mortgage repayment that you can afford. Apart from your income, the lender is bound to check out the commitments you have towards other outstanding debts.

A greater repayment capacity will enhance your power to borrow, more so, when you co-own a property with a relative. Your financial commitments may include vehicle financing, credit card repayment, repaying loans and other debts.

Loan Repayments:

The amount that you can borrow may be easily determined by the interest rate and the loan term that you sign up for. As the rate of interest falls, your repayment amount also gets lower. By opting for a short-term loan, you’ll end up saving much of the loan interest. You must accept a loan repayment term that matches your financial situation.

Living Costs:

Your loan application only gets approved when your lender does through your living costs. School fees and cost of child care are among charges that increase your living cost. Once the lender is able to identify your borrowing capacity, it becomes much easier for you to sort out these expenses. Even after maintaining a certain living standard, you’ll need to work towards repaying the mortgage.

Credit Rating:

Your credit rating is certainly an important factor that determines your borrowing capacity. By proving your worth as a reliable borrower, you’ll be able to convince the lender for a much higher loan amount. However, you’ll also need to repay the loan amount within the specified time-frame. Your loan application may be rejected after you’ve defaulted on repaying your utility bills and credit card bills in the recent past. Before even visiting a lender, you must check out free copies of your credit report for free from each of the 3 credit reporting agencies. All of the red flags appearing in your credit reports need to be compared and the discrepancies need to be resolved in any.



Asset Evaluation:

In an attempt to identify your actual loan requirement, a lender can run a credit check on the assets owned by you. All of the vehicles that you own as well as your investment options might affect a lender’s decision. These factors hold considerable ground in determining your loan requirement.

Keeping these factors in mind, you’ll need to work on all areas of opportunity just to enhance your borrowing capacity. This way, you’ll have more options of comparing loan and fresh job offers that come your way.


House Flipping – Another Way to Make Money

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We’re always looking for ways to bring in more cash. Whether you need to pay off a few more bills or to increase your retirement fund, the more money you can bring in, typically the better off you will be. Besides your monthly income, do you have other ways you bring in cash?

Many individuals, business partners, and even couples will test their skills of flipping a house. When done correctly, you could walk away with a hefty lump sum of money. However, done poorly and you’re looking at a considerable loss.

Does that mean you shouldn’t try it? Not necessarily. Although house flipping is not for everyone, it could be the other source of income you were looking for to pay off your last credit card. If this is something you’ve thought of doing, here are a few tips to make your first house flip successful.

Are You Ready?

First of all, you want to understand that flipping a house is not a simple task. It tends to require a lot of skill in renovations, or a decent amount of money up front to hire someone to do the upgrades. If you are uncertain if you’ll be able to complete the flip on your own, or can’t afford to hire contractors to help, you may want to take another look at if house flipping is for you.

Find the Right Partner

If you’re looking to partner with someone to flip a house, don’t choose just anyone. You’ll be working closely with this person most likely seven days a week for as long as it takes to complete the renovations. Will you be able to stay civil with each other, or do you expect your relationship to fizzle out?

Do Some Reading First

So, you’ve decided you’re ready to flip a house and have found the right partner, is it time to dive in? Before you do that, consider reading up on house flipping from those who are successful in the business. They’ll be able to give you the ins and outs for you to make your first flip a successful, and profitable one.

Find a Property Fit For Your Level

If this is your first house flip, do you want to dive into one that will require basically a rebuild? Alternatively, would it be better to find a house already in decent shape that only needs a few upgrades? Biting off more than you can chew at the start could set you up for a disastrous flip and ultimately cost you more money in the end.

Finding the right property also should include the location of your potential flip. You want to find a balance of property value with how much you’re spending. A beautiful house in a rundown end of town may not sell for as much money as you want. Purchasing a home in a high valued neighborhood could sell high, but it may cost you way more than budgeted to fix and meet the neighborhood standards.



Fix Quickly, Sell Quickly

Part of the art of flipping a house is to fix it up as quickly as possible (while maintaining quality), and then turning around and selling it right away. You could put in a ton of work to make the house look beautiful, but it won’t make you much money if you don’t sell it right away. The longer you hold on to the house, the more money it costs you.
When the time comes to sell the house,every small detail matters. From how you stage the home to even the smell of it, every detail can influence someone’s decision to make an offer. So, by setting it up in a way that allows potential clients to picture their family in the home, the better chances you have of closing a deal.

About the writer: Jeremy Biberdorf is the owner & founder of the popular investing blog modestmoney.com. Check out his site for latest investing news and tips


Tips to Earn More Than What You’re Doing Right Now

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Financial crunches may appear all of a sudden. Certain unforeseen circumstances may compel you to land up in a financial crisis. You might need to pay off a utility bill, buy a gift for a loved one or pay off your debt all of a sudden. You may choose to pull out of debt and feel comfortable financially even after putting in a minimum effort from your side. But for this, you’ll need to do an extensive research and gather quality information.

1. Secure a Temporary Job

There are a few temporary agencies that hire and place skilled workers with client organizations that seek short-term assistance. Apart from offering a good pay package, these jobs tend to explore the full potential of an employee who’s prepared to work for full-time.

2. Start Selling All Unused Things

There are a number of channels that enable you to sell off your appliances, electronics, toys, and clothes without any apprehension. You may even consider checking out the local flea market for renting out a hand-picked space and hosting any garage sale if you really wish to remain traditional. You may even check out your opportunities online if you’re going to use your desktop. These days, you’re bound to come across a number of e-commerce sites like Amazon that have categories to get your products listed over the internet.

3. Opt for Babysitting Services

You may opt for babysitting and pet-sitting jobs whenever you’re free. You might be surprised to find some opportunities coming up near your residence. There are a few good websites that will help you catch up with such opportunities from time to time.

4. Work from your Desktop Computer

There are a number of jobs that you may do from home in this digital age. Apart from being a developer, you can work as a professional blogger, tax consultant, online tutor, and virtual assistant. There are also a few survey sites and data entry websites that offer you cash.

5. Choose Any Seasonal Job

A number of swimming pools and amusement parks tend to offer fresh opportunities to summer jobseekers during the warm summer months. A fun-filled environment with flexible working hours is what you get in return. On the contrary, if you’re looking to earn quick cash, you may choose to explore the retail stores during the winter holidays. You may certainly be able to enjoy flexible working hours with a few seasonal positions.



6. Rent out Your Car

This is for those of you that haven’t been using their cars too often. You have this option of renting out your car. You must acquire more knowledge on how much coverage you ought to seek for your vehicle when it’s not going to be used more frequently. You must protect yourself from landing up in situations wherein you need to spend more towards repairs.

7. Participate in Market Surveys

There are a few organizations that pay more to know your opinion. You’ll certainly be able to earn more by participating in their market research programs. Once you start accumulating cash, it will be easier for you to spend more money in a beneficial way. You may check out options like that of the free-rewards account to keep your money. This way, you’ll gain more chances of acquiring extra funds in the future.


Students and their investment goals – Are there any apps to help the lot?

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You can’t deny the fact that the world is a harsh place and there are numerous people who could possibly sell you magic cat dung and nail clippings if they could easily get away with that. Sadly enough, the financial industry is full of such opportunists who are more interested to dupe you into accepting something that is of no use to you. They can disguise their feline faces to look and smell sweeter than a bunch of spring flowers.

As far as students are concerned, they’re more vulnerable to such shady tactics and hence they are the best target for the financial companies. You have to be sceptical about almost everything that a person tells you whenever they’re offering you monetary advice. Read on to know more on students and investment.

Things to do to jumpstart your career as an investor

? If you’re starting off with small capital, you should get a broker who will agree to accept that amount. Later on, you may increase the total capital by investing more funds on a daily basis.

? Calculate and be sure about the total amount of money which you’re willing enough to risk. Don’t forget that investment will always involve risk and hence you should know your risk tolerance ability.

? There are financial vehicles which guarantee profits and provide students with minimum risks. CDs, Federal savings bonds, and even the student savings accounts which are approved by FDIC are all there. You should be smart about deciding.

? In case you’re able to take on risk and invest for a longer period, you can choose mutual funds of ETFs. Mutual fund companies collect the money and manage them for people for purposes related to investment.

? Perform a background research of the company. Research on the past performances and you can take a better decision about the company you choose to invest in.
The top 3 investment apps to help a student

1. M1 Finance

Over the last few years, M1 has become one of the most favorite platforms as they offer commission free investing, the capability to invest in several shares and they also offer you automatic deposits. All these make M1 Finance one of the best apps for students.



2. Fidelity

This is yet another popular and famous app which lets you invest for free. Fidelity is an app which provides you with a wide array of commission-free ETFs which allows majority of the investor to build an investment portfolio which is perfectly balances. You don’t require any minimum amount to open a Fidelity IRA.

3. Robinhood

Robinhood is an investment app which allows you to purchase and sell off stocks for fee. Users are allowed to purchase or sell stocks at the market price and this app makes limited orders and also stop-loss orders. If you’re not an active trader, then this app will have too much functionality for you.

Therefore, being a student, you have to be careful about the investment steps that you take. Your savings is limited and hence you can’t afford to incur losses. So, take into account the above mentioned tips and apps.

 


Lending Options When You Have Bad Credit

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If you have bad credit, then you may think that a loan is out of your reach. However, it is possible to get a loan without having a good credit score. There are many lending options that you have.

Home Equity Line of Credit

If you are a homeowner and the home has built equity, then you can get a home equity line of credit. This is a risky type of loan because you are using your home as collateral. However, it is one of the best options if you have bad credit.

You will be able to use your funds in whatever way that you want. A home equity line of credit typically has a lower interest rate than credit cards.

Secured Loans

Lenders feel more comfortable lending to people with bad credit if they have something that they can use as collateral. The item that you use as collateral can be repossessed if you do not pay the loan back. There are several things that you can use as collateral.

You can use your vehicle as collateral. A loan that is secured by a car is also known as a vehicle title loan. You can also use investments that you have as collateral. Additionally, some lenders will allow you to use your future paychecks as collateral.

Payday Loans

Payday loans are a popular option for people who have bad credit. It is relatively simple to get a payday loan. If you have proof of income and a bank account, then you will likely be able to get approved for a payday loan. However, there are downsides that come along with getting a payday loan.

Payday loans typically have high interest rates. Even though no credit check is required, your credit score will be affected if you do not pay back the loan.

Unsecured Loan

Contrary to popular belief, it is still possible for you to get an unsecured loan with bad credit. However, your lender will likely require that you apply with a co-signer. The co–signer must have good credit and a stable employment history. If you cannot pay back the loan, then the co-signer will be responsible.

You and your co-signer’s credit will take a hit if the loan is not paid back. However, there are benefits that you can reap from applying with a co-signer. You may be able to get a loan with a lower interest rate. A cosigner also allows you to get a loan without having to risk your possessions by using them as collateral.



Credit Union Loans

If you trouble getting a loan from a bank, then you should consider going to a credit union. It is easier to get approved for a credit union loan because the standards are more relaxed. They also offer loans for a lower interest rate because they work on a non-profit basis. Additionally, there are fewer fees and penalties.

Keep in mind that your credit score will still determine how much you will be able to borrow.

 


More college dropouts fail to repay their student loans – What are the reasons?

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The researchers have delved into the best predictors of whether or not students are able to repay their student loans – college completion. Although there are several factors which influence the education loan repayment rates, yet whether or not a student has a credential post attending college is said to be the strongest predictors of whether or not the student will repay the loan. 5 years post entering the cycle of student loan repayment, 70% of the borrowers who passed out college with a certificate and a degree have made some kind of progress while paying down the principal amount on the loan. However, for the borrowers who couldn’t complete college, the rate of repayment is also 45%.

The link or the relation between repayment of loans and completion of college has become established and you must be wondering as to why and how it exists. Read on the remaining concerns of this article to know more on the mutually exclusive explanations which establish the link between the two.

#1: Graduates of colleges usually make more money

The income made by 4 year college graduates surpass by around 50% than those people who have earned college experience but who don’t hold any degree. People who earn a big amout are more capable of meeting monetary obligations like making repayments towards their student loans. Although it is true that college graduates accumulate more debt than the dropouts, they are also able to handle their payments in a better way.

#2: College dropouts usually have less urge to pay off their loans

There’s noone who will love to pay off their student loans and it is especially more grating and saddling for those who think that they’ve not received any benefit from their education. Due to the fact that a dropout doesn’t own any credential which he can use for advancement in his career, the benefit that he got from his college education will certainly be minimum. Although several dropouts will afford such payments, who will wish to pay for anything that is just not worth it? The immediate consequence of inability to pay student loans is not serious enough. Being delinquent on you rent payments will mean eviction but not being able to pay your student loan won’t repossess your college degree. As the upshot is lenient enough, this is one more reason for defaulting.

#3: Dropouts and graduates differ in different ways

The factors which cause the gap in repayment rate between dropouts and graduates actually start existing whenever the students set their foot on the campus. Researchers can usually account for the factors like financial resources, family background, and income post-college and few observable differences always exist between all those who complete college and those who don’t.



All the three explanations usually play a vital role in deciding the repayment gap between the dropouts and the college goers. However, the decision about which one is the most important point is still a topic of debate among the policymakers.


How to Become Filthy Rich

 

Saving money is about a number of other things than just negotiating at the top of your voice. You must check out your attitude towards saving money. You may certainly be one of those people who doesn’t fit into the category of filthy rich. Apart from money, personal finance has something to do with your traits. Frugal ways have already been adopted by a number of millionaires, few of who’re celebrities. Understanding the ways in which your financial situation gets affected by your personal traits is your key to accumulating wealth.

Check Out a Few Important Traits:

Discipline

You must prove to be a disciplined investor if you really wish to save money for meeting your end objectives. Personal finance has to be studied in details if you really wish to turn rich in the long run. Actually, it’s all about executing the life plans in a disciplined manner.

Patience

When it comes to saving money, you must have more patience. Exercising a bit of patience holds you from landing into debt and helps you save more. You’ll achieve the cornerstone of great finances once you have the much-needed patience of identifying a great deal.

Risk-Taking Ability

You’ll need to take certain risks if you really wish to acquire wealth. However, you shouldn’t take uncalculated risks. You must consider all the options that you may fall back on and take risks after doing your homework.
The risk element is there to be dealt with by those that participate in the stock market. But if you invest your savings in a wise manner, you’re bound to catch up with great returns in the long run. If you’re among those that fear the overall risk, you may end up saving money in accounts that are bound to be affected by inflation.

Creativity

All of our expectations aren’t matched by our income and our economy. Our financial plans are often disrupted by certain unexpected developments. You must prepare yourself to deal with fresh circumstances. A lot of creativity is needed to ensure financial stability instead of procuring things in haste.

Result-Oriented Action

It’s truly important for you to set a goal and work towards it. It’s truly difficult for you to reach your destination when you aren’t aware of where you’re heading to. For those of you that have financial goals, you may achieve an immense personal finance boost. It will even help you stay motivated and achieve all the goals that you’ve set on your own. It won’t be possible for you to reach your financial destinations very easily if you lack goals and lack a vivid roadmap.



Combining Smart work with hard work

A lot of hard work gets in stake when you’re attempting to steer clear of debt and generate wealth. Some of you may simply start believing that by acquiring a lottery, you might get rid of some financial problems. However, the right path to accumulating wealth is through working hard and acquiring advanced skill sets.

Your knowledge is likely to get reflected in your growth and success. You may not possess some of the traits that the others do, but you must adapt to changes. Once you nurture a few inherent qualities, you’ll soon find out ways to identify your areas of opportunity and acquire all necessary skills that aren’t present in you. Most of the skill sets that you acquire will assist you in managing your finances more efficiently and also acquire more wealth.


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