How to Encourage Your Family Member to Get a Personal Loan (Instead of Borrowing From You)

Being constantly approached by a family for a loan can be very annoying, and also a source of embarrassment because you want to say no, but find it difficult to do so. There are many downsides to lending or getting a loan from someone you know. This is applicable to even your own kids. It may be more beneficial for them to get the loan from a lender, and you want to advise them to do so, but do not know how. Here are some tips to help you encourage your family member to get a personal loan, but first let us look at why it may be a bad idea for you to supply the loan.

The Downsides of Social Lending Between Relatives

1. If a lender refused to give a loan chances are you should too. In many instances family members who had been turned down by a loan institution do end up defaulting on loans raised from family members. This means it may take forever or never get back your money.

2. A default on a family loan could cause to you to have to sue your own in order to recover your funds. This could lead to a huge financial and emotional strain on you and your family.

3. The family member may start showing signs of irresponsibility by going on spending sprees or taking out a new car instead of honoring the loan payment.

4. There may have been insufficient attention to making the agreement legitimate by asking the relative to sign off on an agreement. This could leave you in a bad spot without any proof it was a loan.

5. You may not have known the individuals money management style before, and was therefore unable to adequately assess your risk.

6. You may find you have breached tax laws because you chose to forgive balances or payments or charged too little on the interest rate.

Tips on Encouraging a Family Member to Get a Personal Loan

1. It may not be easy, but it is time to be brutally honest. It is time to assist your family by giving them advice rather than money. Firstly declare to the individual that you will not be able to assist with another loan. This will remove from his/her mind any thoughts of trying to be more persuasive.

2. Let the family member know that in any case you would opt to use the services of a social lending company so you would not have to deal with the hassle of recollection. This would further serve to let them know they will not be getting a direct loan from you again.

3. Now offer them some advice on the benefits of getting a personal loan as opposed to borrowing from you. Their credit score can be improved in a very short time and the loans are short term loans.

4. They will also benefit from advice and assistance from a professional financial adviser, and finally learn to take control of their own finances. This would allow them to become financially independent and no longer have to bother family or friends for a loan.

5. Personal loans are another variety of loan that helps to boost credit history once it properly managed.

Constantly helping out a family member in financial crisis will never help them to grow financially. Giving them advice that leads to financial freedom is of more value than providing them with instant cash.

Peter Coppola is a personal finance and insurance expert. He mainly writes for personal finance and insurance blogs. Visit EasyFinance to learn more about short term finance options.
References:

http://www.moneycrashers.com/why-you-should-not-lend-money-to-friends-and-family/

http://www.justmommies.com/family-life/family-finances/the-family-bum-how-to-deal-with-family-members-who-constantly-ask-for-mo?page=0,1

How to Get a Car Loan with Bad Credit

Bad credit is an issue for many people. Since the recession, families have struggled to stay on top of their debts, due to rising costs and high unemployment. This has led to missing payments on loans and some having to file for bankruptcy. Bad credit makes it hard to gain any form of credit in the future but the good news is that you can gain a car loan with a few steps.

Why is Your Credit Poor?

Take some time to look into your credit report and find out why your credit is poor. Do you have outstanding balances on debts? Have you filed for bankruptcy? Have you got a few overdue bills? By knowing your problem, you will be able to take the steps to improve your credit rating and will increase your chances of gaining that finance deal.

Bear in mind that most accounts will stay on your credit file for two years after being closed so can affect your credit for that time. Bankruptcy will stay on your file for six to seven years and will affect you for that term.  While this is the case, it is worth taking the steps to repair your credit rating by paying off debts and unpaid bills. This will help you in the future.

Ask for a Smaller Loan

You will have more chance gaining a financing deal if you ask for a smaller amount with a shorter term. This means that the lenders suffer a smaller risk by accepting you. However, this will not guarantee approval. It is also important to look at the different types of loans to find those who are more likely to accept you.

Prove Your Ability

Another option is to prove that you can make the payments. This requires proof of income and all outgoings, such as bank statements and payslips. You will be able to show the amount of disposable income you have available and that you are not overstretching your finances. Again, this will not guarantee acceptance, but lenders are able to see that you can make repayments to the financial agreements.

Research Lenders Most Likely to Lend to You

Some lenders specifically cater for those with a bad credit rating so it is worth researching into these. The one thing to note is that you will usually have a higher rate of interest to counter the risk that the lender is taken. The higher interest rate will mean that you will pay more in the long term but may be worth it if you really need the finance. On the plus side, having the credit agreement and sticking to it for one or two years will help prove that you are a sensible borrower and will mean you may be eligible for a refinancing deal at a better rate.

Refinancing in the future means that you could gain a lower interest rate. This will help you pay off less in the long term for the car loan. However, you will need to prove that you are a good borrower and sensible with your money and make sure other areas are perfect to gain the best refinancing deals.

Get a Co-Signer

If you are still struggling, you may benefit from having a co-signer. This will be someone with a better credit rating to you who will be able to sign against the loan. The creditor will be able to gain the money from the co-signer if you fail to stick to the agreement.

While this is beneficial to you, it may be difficult to find someone who is willing to do this. The problem for the co-signer is that they will be stuck with your debt if you fail to keep up with repayments. They may insist that there is a legal agreement in place between the two of you should that happen. Their credit rating will also be affected by having the loan on their report, especially if you fail to meet the repayments.

Take the time to shop around and find the best option for your loan. Getting a car loan with bad credit is possible but it is also difficult. You will need to prove that you are sensible with your money and show that you are not the risk your credit file makes you out to be.

Tim is a full time writer but has worked in the finance industry for many years. He predominately writes on topics about financing, such as getting bad credit car loans Massachusetts.

Payday Loan Companies Mock at the Law

For the working class, the ability to pay off monthly bills, and having just enough at the end of the month is bliss. More and more families are having a difficult time just making ends meet, and not having any debts poured over from the previous month is a normal target. The problem is, not every day is perfect. There are those days when their card needs repairing, or when a credit card bill is forgotten. During those circumstances where time is of the essence, payday loans are often the quick and easy solution.

Payday loans online is almost an immediate answer to emergency money needs. If you have a computer, a stable job and a bank account, your request may be approved in a matter of minutes. However, this easy and fast approval is also the very reason why it can be easily abused by loaning companies.

More and more people are highly reliant on payday loans in order to survive their finances. And because of the high and growing demand, there are many in the industry who present terms that are opaque and vague. One of the reasons to be blamed for the constant trespass of these companies is the lack of regulation from the government. Yes, there are certain efforts to create a system, but many of the legitimate companies have also complained that the proposed terms are damaging to the industry, and lacked the proper consultation with the existing legal players. Because their existing market is often those who are in a vulnerable state, a swift but well thought of measure should be followed.

Tightening the credit industry’s code of practice will only mark a huge dent on those who rely on legal payday loan firms. When other credit options have a very strict requirement list and government assistance is an impossible feat that would lead to individuals falling into the mercy of loan sharks and illegal payday loan companies.

There are certain factors to look for when weeding out the illegal credit companies from your list. Payday loans always have a higher interest rate compared to other loans because of the fast processing and the maximum risk for the lender. Because of this, you shouldn’t compare payday loans and regular loans based on the APR’s (Annual Percentage Rate). The payday loans are often limited to just one month, therefore, you can expect that the projected APR is leagues higher compared to the others. What you do have to look for though is transparency. Legal credit companies will specify exactly how much percentage you have to pay on your due date, and the additional charges should you miss the payment. This may be on a monthly or daily calculation, but you should be provided the information freely.

Illegal companies that offer payday loans online often have the same easy and fast processing, but only inform you of the interest you build up on your due date. The additional charges you incur for missed payments are often very vague or even missing altogether. If you miss fully comprehending the terms they provide, or agreed to the loan even with the missing information, they can get away with overcharging you and you are legally obligated to pay for those fees.

So now you know that payday loans have a higher interest rate than your usual bank credit. How do you know if you’re in a desperate position where the loan can alleviate your finances, or just dig your financial grave even deeper?

Only take on a payday loan if:
1. You issued a cheque that is about to bounce.
2. Your alternative loan is long term, and you have the ability to pay in a few weeks.
3. You have an incoming bill that will lead to your credit going over the limit and charging you with a huge overdraft.
4. You are unable to convince your bank to authorize a cheaper overdraft.

Those given above are the usual scenarios where payday loans are the practical choice. You should remember that there are some loan firms that simply take advantage of the fact that you are overly reliant on loans. If you just happen to be short on your day to day expenses, or if you need a loan that could take you months to pay, look for other options. Cut your expenses or go to the bank for a better deal. Payday loan companies may be able to go around the law, but if you’re careful and properly advised, you’ll be able to stay off their list.

Mackenzie Salis is a finance writer for 3 years. She is the author of the site: http://www.onlinepaydayloansguide.com that can provide all valuable information about loans and warn you against fraud and swindle.

Why your firm needs a facilities management expert

Think facilities management is all about getting blocked toilets unblocked and ensuring each employee has their chair set right? Well you’re wrong. It’s about a whole lot more than that. Here’s a quick guide on why your company needs a facilities management expert.

Reducing risk and accommodating change

FM experts can reduce the overall risks your workplace presents. You’ve probably never thought twice about that slightly loose material on the stairs, or the wonky toilet seat. As soon as employee has an accident and takes legal action against you, it’ll be all you can think about. This sounds trivial, but someone who is constantly looking out for the welfare of your workforce is a true asset. Plus, if anything changes space-wise (i.e. you switch your offices about, you move building or you simply change your desks) your FM expert will be on it before you can blink. They’ll have a new risk management plan drawn up; rolling with the changes like nothing ever happened. You won’t even notice it’s happening... but that’s the beauty of a true FM professional.

Managing your environmental impact

FM professionals are trained in identifying and reducing your environmental impact. With the rise of global warming, businesses can’t afford to be too careful when it comes to their emissions and waste. Hiring an FM expert could help you improve your contribution to the world by reducing your overall impact; this can lead to heightened corporate social responsibility and even gain you a few awards which you can shout about from the rooftops. If it’ll improve your reputation, what’s not to like?

Streamlining your processes

A qualified, experienced FM professional will be able to take one look at an existing process and streamline it. It’s a real gift and one that could save your business a whole lot of money, not to mention time and effort. Most FM divisions will take care of your central processes and procedures; be they health and safety-related or not. This means you can rely on them to make the processes as time and cost-effective as possible. Plus, they’ll be able to keep your bids team updated on the company’s latest updates. Need a comprehensive business continuity policy? Ask your FM expert. Worried about the gifts and bribery policy? Your FM specialist is there to help. Above all, they can ensure you’re fully compliant with the law (with the help of your legal team, of course). This could save you a lot of worry and money in the future, too.

You can’t really afford to be without a facilities management team. It really is as clear-cut as that. Your facilities management specialists will do so much without you even noticing. Isn’t that what great employees are made of? Come the time when you do need some help, you’ll be so glad you have them... so appreciate them as much as you can. As with all employees, their contribution helps the business run and when the business runs, you make a profit - it's simple!

Forex Trading Basics

Forex trading is the buying and selling of currencies that takes place in the foreign exchange market. Up until a few years ago trading in currencies was not open to the general public and only a fee large financial institutions and banks were allowed to trade in currencies. Ever since the markets have opened up, anyone can trade in currencies by using various forex trading platforms that are available with forex brokers.

The forex market is the world’s largest trading arena. Daily volumes go as high as trillions of dollars. These volumes are higher than all the stock exchanges of the world put together. The popularity of the forex markets is increasing every day and the market is growing at a rapid pace too.

Key Characteristics of Forex Trading

Forex trading involves the selling and buying currencies. This is why it is one of the most liquid investments that one can think of, making it extremely different from the real estate market or the stock market too. All trading is carried out over the counter and there is no central marketplace like there is in the case of stocks. This decentralization means that traders can choose to purchase from various dealers that are present in the open market and ensure that they get the best rate that is possible. It allows for higher levels of competition and comparison of prices. The same decentralization also indicates that there is no central regulating or controlling body in the case of forex trading. Another aspect that differentiates the forex markets from others is that it is open 24 hours a day for 5 days in a week.

Basics of Forex Trading

When you buy a currency you also sell another currency at the same time. One of the currencies is called the base currency and the other is called the counter currency. The value of the currency that you are buying is determined by the amount of the other currency that you need to pay in order to buy it. The currency that you buy is called the base currency and the one that you are selling is called the counter currency. Since two currencies are involved in each trade, currencies are almost always quoted as pairs. The four major currency pairs that are traded in the markets are EUR/USD, USD/JPY, GBP/USD and USD/CHF.

Forex Trading Platform

The trading platform is the most important tool for a forex trader. This is why forex brokers ensure that provide an opportunity to the new trader to test out the trading platform by using their demo account. But remember, the best forex broker isn't necessarily the broker that gives you the best forex platform.  Not only does this demo account give an opportunity to the trader to test out the specific trading platform, it also allows for newcomers to trade in a virtual environment that simulates real life scenarios. Everything in the demo account is exactly how it will be in the real forex market except for the fact that real monies are not involved. You can choose currencies to deal in, decide the level of risk that you will take, track rates, place trades and decide stop loss too.

How to Use Leverage Trading Currency Pairs

One of the top reasons you might have entered the world of forex instead of sticking with stocks and bonds is the concept of leverage. Through leverage, you can trade large amounts of money and either earn enough to trade without leverage (or even retire), or lose so much money that you immediately wipe out your trading account. You have to understand leverage trading before you try to participate in it, or else you're going to set yourself up to go bust.

The basics of leverage

If you trade in standard units of 100,000 units of currency and have a 1% margin, you need $1,000. Your leverage will be 100:1, which you can calculate by dividing the units of currency by the amount you are depositing (100,000 divided by 1,000 is 100, so the leverage is 100:1). Another example: if you were depositing $2,000 for the same trade, you would have 50:1 leverage.

Leverage is higher in the forex market than other markets, which is probably one reason you're trading in this market. The reason is because currency pairs are often more stable than company stocks or other forms of investments and don't rapidly appreciate or depreciate, allowing your broker to lend you the appropriate amount without undue risk to either you or the broker.

Risk and margin

Of course, the higher the leverage or the smaller your margin, the higher the risk. If you bought one standard unit with a $1,000 deposit and it increased in value by $1,000, you would have a 100% return (your initial $1,000 deposit divided by the $1,000 gain, then multiplied by 100 to get the percentage). Similarly, if the value decreased by $1,000 instead, you would have a -100% return and would quickly be broke.

The amount you deposit is the margin. If you deposit $2,000 on a $100,000 currency position, your margin is 2%. Margin generally varies depending on the broker, and can be anywhere from 0.25% to 5%. If your margin is 0.25% and you deposit $250 on that same $100,000, the tiniest change in the market can deplete your funds instantly.

Decide on your real leverage

The margin-based leverage on your account is less important than your real leverage – the 50:1 or 100:1 number, for instance. If you invest $1,000 in shorting $10,000, you will lose much less money if you lose pips on a currency rising in value unexpectedly than if you short $100,000. Instead of risking as much as you can, try to keep your investing goals in mind.

If you have spare money and you don't mind risk, by all means, get 50:1 or even 100:1 leverage and enjoy the potential profits – just be prepared to lose your investment quickly, too. For beginners or intermediate traders, it usually makes more sense to avoid highly-leveraged trades and stick to more reasonable leverage like 5:1, 10:1, or 20:1.

Now that you have a basic understanding of leverage, try leverage trading currency pairs as a potentially lucrative investment, and revel in not having to come up with the full amount to trade the market. Just don't be too hasty and rush into a trade without taking a good look at the leverage you're applying to the trade.

Resources:
http://www.investopedia.com/ask/answers/06/forexleverage.asp#axzz2ALj3MXN0
http://www.babypips.com/school/undergraduate/discovering-your-trading-profile/the-number-1-cause-of-death-of-forex-traders/
http://www.investopedia.com/articles/forex/07/forex_leverage.asp#axzz2ALj3MXN0

This Guest post is contributed by Stacy Pruitt, a freelance forex strategy and finance writer. Stacy writes about advanced trading and forex indicators. Click here for advanced videos on forex trading.

Payday Loans vs. Cash Loans: How to Know Which is Right For You

It happens to everybody at one time or another. They get just a little short on their monthly bills or they just don't quite have enough cash to make it until the next payday. Many struggle with what they should do in these situations; should they take out a long term loan from the bank or should they consider a short term payday loan. The answer lies with a few personal situations that will determine which option is best for them.

Qualifying for a Bank Loan vs. Payday Loan

Bad credit seems to be a fact of life for many consumers. This prevents them from getting a traditional bank loan to help them through rough financial times. To qualify for a traditional bank loan, you typically need a high credit score as well as a certain debt to income ratio on top of verifiable income. All of these things together prevent many people from being able to qualify for a bank loan.

Qualifying for a payday loan is much easier. Most companies do not even run a credit check; they simply verify the applicant's income and bank accounts. This is often referred to as a no credit check loan since they simply require a job to qualify for the loan. To apply for a payday loan, the applicant often can fill out a simple application online, wait a couple hours for the verification process and then have their cash deposited into their bank account the following business day.

Repayment

Traditional bank loans require that borrowers repay the loan and the interest over a period of time, often 12-18 months. This does bring down the monthly payment that is required although when only a couple hundred dollars are needed, the longer repayment plan can be harder financially than paying off the loan in one lump sum. The average payment for a small, personal loan from a bank is around $100 per month.

The payday loan repayment method is different from traditional banks. The payday loan is paid off in one lump sum through EFT on an agreed upon date, from the bank account that was used for the initial loan. With this plan, the borrower simply pays the loan off in one shot. There is no worrying about making a monthly payment, it is just done. The way the plan works is that the Annual Percentage Rate is much higher than banks, but since it is paid off in one payment, it is usually only about $60, much less than the total interest paid for any bank loan.

For those consumers who need just a small boost until their next payday, a short term payday loan could be the perfect answer. It is a loan that is easy to qualify for and is paid off right away. There is no more worrying about adding a new expense to the budget because it only requires one payment. If you just need a boost until your next payday, look into your options for a payday loan to see how it can help you.

Guest post contributed by Ted Kingman on behalf of SaveMyBacon.co.nz – Ted is an freelance personal finance writer. His articles mainly appear on personal finance blogs. To find out more about SaveMyBacon cash loans, visit their website.

Things to Consider Before You Invest Overseas

Today many entrepreneurs hope to invest in an overseas property portfolio, and why not when there is a lot of money to be made within this sector? This being said, making a profit is not always an easy feat. It is vital that prospective investors practice caution before purchasing an overseas investment property. Here are five important things to consider before taking the plunge.

1. Why do you want to invest overseas?

It is imperative that you consider your motives for wanting to invest abroad. Are you hoping to invest because you have seen upbeat market trends? In what country would you like to invest and why? Is it more cost effective to own the property than to rent it? You will need to ask yourselves these questions before investing.

2. Reflect upon travel costs when visiting and maintaining the property

Unfortunately, air travel has become more expensive in recent years and therefore, you will have to take into consideration this important aspect before buying a property abroad. It is likely that you will need to visit the property in order to carry out maintenance, with this in mind, having a caretaker may be more cost effective. You must carefully consider these additional costs before investing overseas.

3. Don't get carried away by overseas investment property hype

Today magazines continue to push overseas property investment. Nonetheless, you must keep your feet on the ground and carry out the necessary research concerning the location in which you hope to invest in a new property. Speak to the locals as well as to business owners to find out more about your desired city and get legal advice before signing contracts in order to ensure that you understand any clauses that may even be written in a foreign language.

4. Check the market viability

Before signing any contracts you will need to find out how simple or difficult it is to rent a property in the particular location that interests you. Do a little research to find out if there are many empty properties in the area? Contact property agents in order to ensure that you fully understand the local market before taking the investment plunge.

5. How much potential does the property have?

You will need to consider how much money making potential the property that interests you really has. If you want to enter into this market simply to earn a profit, think about how you can keep maintenance to a minimum. Make sure that you do your research and math to ensure that an overseas property is genuinely worth your investment money.

Before investing in a property overseas, it is crucial that you make good use of your common sense and do not buy a property unless you are 100% sure that you can cover its costs should the investment not work out. If you are already looking to invest, why not consider to buy real estate through a free classifieds website?

Five Tips on How to Refinance Your Car Loan

With interest rates at record lows, many people have turned to a mortgage refinance in an attempt to secure lower rates and save money over the life of their loans. However, what many fail to realise is that car loans can also be refinanced; and the process is both easier and quicker than for a home mortgage. The five tips below will help you decide whether refinancing your car loan is the right move for you, and how to go about doing so.

1. Understand your current loan

Before proceeding with a car loan refinance, it is important to be clear about how much you still owe on your current loan, the loan term and the interest rates you are currently paying. You should not refinance for more than the amount you currently owe, nor should you do so if the loan term is nearing the end as you are likely to increase your costs by extending the term. Moreover, if your current loan involves hefty pre-payment penalties, consider whether the savings from refinancing will cover those costs.

2. Know your credit

Knowing your credit will help you obtain the fairest rates possible, allowing you to avoid being duped by resolute salesmen. If your credit score has improved since you took out your original loan, refinancing could be truly beneficial. On the other hand, if your credit has worsened, it is worth considering whether refinancing is the best option.

3. Shop around

As with almost everything, shopping around is essential for finding the best deal available. Make sure you get quotes from multiple lenders, using free online services where possible, in order to compare rates, terms and conditions and select the most advantageous deal.

4. Look beyond low interest rates

Low interest rates can be particularly alluring for those seeking to save during an otherwise challenging financial period. Though low rates may save you money, do not overlook other important factors that will affect how much you pay overall. Transfer costs, processing fees and pre-payment conditions will eat into your savings if you have not taken them into account. In short: read the fine print.

6. Calculate your savings

Once armed with information regarding your previous loan and having identified the best refinancing deal available, take the time to do the maths. There are several car loan calculators available online, which can be used to check that refinancing will truly save you money.

Car loan refinancing can be an excellent way of saving money, particularly if your credit score has improved and interest rates haven fallen. It is however worth taking the time to calculate your potential savings and expenses accurately, while always keeping an eye on the small print. If you are just about to buy a car, check this useful page to find great deals on second-hand Chevrolet cars.

5 Loan Terms That Small Business Owners Must Know

Most small businesses are financed using a combination of personal resources and borrowed funds, meaning that understanding the mechanics behind loans should be a priority for entrepreneurs. This is particularly true because the implications of finance and financial terms tend to be opaque even when they aren't being obscured behind dense language and byzantine rules.


Here are five loan terms that small business owners must know before taking out loans:

Debt to Income Ratio

As its name indicates, the debt to income ratio is the percentage of the business's gross income that goes towards paying its short-term debt obligations. For obvious reasons, a ratio of one or higher is somewhere between disastrous and catastrophic because it indicates that the business is not earning enough money to even cover the minimum payments on its debts, much less its other operating and miscellaneous expenses. In general, lenders prefer businesses with smaller debt to income ratios over businesses with simply high incomes because the latter is less useful as a measurement of the business's ability to repay its debts.

Loan Structure

The structure of a loan is composed of the rules by which that loan operates and is repaid. Structure has significant influence in the risk of the loan and thus the interest rates that lenders will charge businesses. For example, a secured loan usually charges less interest than an unsecured loan because loans are secured by designating certain assets as collateral to be seized should the borrower default on the loan. The lender can afford to charge lower interest rates because its losses are diminished compared to the unsecured loan in case of default.

Interest Rate

Interest rate is the percentage of the principal that is charged as interest in each time period. Although most interest rates tend to be quoted on an annual basis, those rates can be misleading because they tend to be nominal rates rather than effective rates. For example, an 8% interest rate compounded on a semi-annual basis means that the principal is charged interest at 4% every six months, meaning that the effective annual interest rate is actually 8.16%. Businesses must carefully read the conditions on their loans and then run their own calculations to figure the actual amounts that they'll be paying each period for the privilege of borrowing money.

Principal

The principal is the sum that the business borrows from its lenders. It is one of the two figures that is used to calculate the loan's periodic interest. Most loans calculate interest based on the current amount of principal rather than the original amount, meaning that the repayment of the loan speeds up as time passes. This is because a larger portion of the earlier periodic payment goes towards satisfying interest instead of principal compared to later payments.

Solvency

Solvency is the ability of the business to meet its short-term debt obligations as they become due. It is important to remember that solvency is not the same as profitability. A business can produce a profit by earning more revenues than expenses incurred, but that means little for their solvency unless those revenues are collected in cash. This is because most businesses permit the recording of most revenues and expenses before the corresponding cash transactions have taken place. As a result, the solvency of most businesses is more easily gauged using their cash flow statement than their income statement.

This guest post was contributed by Darren Bechard, a freelance writer and business finance researcher. He mainly writes about business finance and enjoys sharing his tips and insights on numerous blogs. Visit Wongaforbusiness.com for more business finance options.

5 Golden Rules of Taking Out Short-Term and Payday Loans

Many individuals and families are living paycheck to paycheck in the current economy. Unfortunately for these people, there is no extra cash for unexpected emergencies. When emergencies arise, they have to look for alternative ways to manage their finances and weather their cash flow crisis. For this reason, many people turn to short-term and payday loans when they are in a financial crunch. Even though these loans come with strict repayment policies and high APRs, sometimes these loans are a struggling individuals only alternative source of income. Below individuals will find tips to help them utilize a short-term or payday loan successfully.

Rule 1: Read all the Paperwork

While the loan process for a short-term or payday loan is relatively easy, there is a great deal of paperwork involved. For a borrower to truly understand the loan they are agreeing to, it is necessary to read all the paperwork involved in obtaining the loan. Information that the borrower will want to pay close attention to include the APR (annual percentage rate) associated with the loan, and loan origination or membership fees required for the loan, the expected repayment date of the loan, and penalties associated with the loan if the borrower were to default on the loan.

Rule 2: Borrowers Should Only Borrow an Amount They Can Pay Back

When applying for a payday or short-term loan, resist the urge to over borrow. Borrowers should think about their current situation before agreeing to a loan amount. How much is needed to cover the current emergency cash flow problems? Is the repayment date and amount truly possible to do? If the borrower fears they cannot pay back the entire loan amount by the repayment date, they may need to consider borrowing a smaller amount.

Rule 3: Abide by all Loan Requirements

Once a payday or short-term loan is acquired, it is imperative to make sure to abide by the loan requirements. This includes making scheduled payments in full and on time. It is crucial to remember that a failure to make payments on time can lead to massive increases in the amount of money owed on the loan.

Rule 4: Try to Avoid Revising the Repayment Date

If the repayment date on the short-term or payday loan is approaching, and the borrower does not think they can pay the loan off in time, it may be necessary to renegotiate the repayment date. However, it is important to realize that not every establishment will offer this service, and in some cases, a renegotiated repayment date can change the terms of the loan. If at all possible, borrowers should make every effort not to change the repayment date on a short-term or payday loan.

Rule 5: Not a Long-Term Solution

Short-term and payday loans are not meant to be long-term cash flow solutions for borrowers. The fees associated with these loans are much higher than traditional loans, and can cause greater financial hardship than they ease if they are turned into a long-term solution. For this reason, borrowers should only turn to these types of loans in a true financial emergency. For long-term solutions to cash flow problems, borrowers may need to rethink their monthly living expenses and make budget cuts to make sure they are living within their means.

While it is entirely possible to borrow with a short-term or payday loan successfully, it does require substantial attention to detail from the borrower. Following these 5 tips for borrowing a short-term or payday loans above will help borrowers borrow successfully:

http://www.loansafe.org/how-much-money-can-i-borrow-from-a-payday-loan
http://www.pbs.org/wnet/need-to-know/five-things/payday-lending/13852/

Darren Bechard is an independent finance researcher. He has been following consumer trends with regards to short term finance and reporting his findings on various personal finance blogs. Find out more about Wonga.com short term loans.

An Introduction to Forex Trading

The foreign exchange market, also known as the FX or Forex market, is one of the largest and most traded markets in the world. It is a type of global, foreign-exchange trading dealing with international currencies. The Forex market is the only one that is open 24 hours a day and that operates in all time zones.

Forex trading is different from other markets, such as the stock market. In these markets, when shares are bought or sold, that is the only action taken. With the Forex market, however, things work differently. Each sale within Forex results in a simultaneous purchase and vice-versa; this is where the “exchange” in “foreign exchange” comes into play.

Currencies are all traded in pairs. There are two types of currency pairs: major pairs and cross-currency pairs. All major currency pairs involve the US dollar. Examples include the Euro-dollar pair and the dollar-yen pair. Cross-currency pairs are alternative ways of trading that do not necessarily involve the US dollar; cross-currency pairs are also known as cross pairs for short. Examples of cross pairs include the Euro-Swiss pair and the Euro-yen pair.

The way in which success is measured in Forex trading is by the profit and loss of the pair, also known as P&L. It is vital to understand how P&L works when dealing with online margin trading; the amount of margin available to work with is directly affected by your P&L.

Your opening margin balance is your initial margin deposit. This is the amount of collateral that you put up when creating your trading account to support the margin requirements of your broker. It is important to note that, unlike other markets, forex trading does not deal with margin calls. Rather, a ratio of margin balances to open positions must be maintained.

An example of how margin ratios work will explain this concept further. Suppose your broker requires that you maintain, at all times, a margin of 100%. Also suppose you have an account with a 100:1 leverage ratio. This means you can control $100 for every $1 of margin in your account. This means that to control $10,000, you will need $100 in your account. This is because $10,000 divided by your leverage ratio of 100 gives you $100.

If your margin balance ends up at less than the broker's required amount, due to losses you've incurred, the broker can terminate your account. This is why it is crucial that you keep an eye on your margin balance. Should this happen, any losses you've experienced will usually be locked in. There is a lot that can be said about margins and margin balances, but this is usually covered in the fine print for the account you create and can vary a lot from one broker to another, making it very important to read over everything ahead of time.

There is much to know about the Forex market and trading within it, but this article represents the most fundamental and important information needed to understand the deeper aspects. The Forex market really isn't as complicated as it seems, and once you understand these basics, you'll have a much easier time not only learning more, but you'll have a much easier time being successful in trading as well.

This article was provided by the leading financial trading education site - FinancialTrading.com.