May 14, 2013
Taking out a personal loan, like any other financial decision, and regardless of whether you are applying to a bank or a company like a payday loan lenders, is something that should no be considered lightly. You should do your homework to make sure you are getting exactly what you require. When you are thinking about a loan it can often be because you find yourself a bit short of funds, albeit temporarily, which can cause you to rush in and perhaps make an ill-considered choice. You really have to resist this temptation and make sure you cover all the bases before going ahead.
First things first you need to take a look at exactly how much any loan will end up costing you over the term of the deal and make an honest assessment of whether that is a price worth paying. Simply calculate the total cost by multiplying the monthly payment by the number of instalments. This will let you see the true cost of credit, ie, the additional amount you will be paying over the term to access the funds now. If you need the loan for something essential like a repair to your car or an urgent home improvement, you may well take the view that the cost is one you are willing to pay. However, if you were thinking of borrowing money for a treat, perhaps a gift for a friend or family member, or perhaps a self indulgent weekend away for you and you partner, you may decide that it’s a little too costly for something that is not vital and decide against it, opting instead to save up for that special treat.
The point is, with the figures in front of you, you can make an informed decision, rather than relying on guesswork.
If you feel you would still like to go ahead but would prefer to reduce the cost if at all possible, then what about considering taking the loan over a shorter term? This is likely to have the effect of increasing your monthly repayment, but because you are paying the loan back over a shorter period of time, the actual amount you pay back will be less.
The other important thing to bear mind mind is to make sure you only seek a loan from a business you can rely on. Although they have received lots of terrible publicity in recent times over scandals such as mis-selling PPI and attempts to fix the inter-bank LIBOR rate, generally speaking you can rely on banks when it comes to obtaining a loan. If you are trying to access cash from somewhere else, perhaps a payday loan lender or other similar firm, you should check them out carefully before proceeding to make sure that they are authorised and that they act in a professional manner. Your local trading standards office would be a good place to check this out. You should also be able to do some research on the internet and if you find anything which causes you concern, steer well clear!
May 13, 2013
Starting up a new business can be a daunting experience. There are so many things to consider, not the least of which is preparing a business plan for your new venture. This is an area where many aspiring entrepreneurs go wrong, mistakenly believing that they only need a business plan to help them obtain a loan from the bank. While a business plan will certainly be required if you are looking to access funding, even if you do not need finance to help with your new business, a business plan is still vitally important because it helps map out your plans and projections for your enterprise and provides a measure against which you can gauge your progress. Even the very act of putting your plans and ideas down in writing can help focus the mind that little bit more keenly.
So what is involved in a good business plan and how do you go about creating one? A business plan in effect should provide a blueprint for the way your business will operate, containing information on a whole range of different aspects of your new venture including, but not restricted to, marketing and promotion, staffing, funding and financial forecasting. If you have never prepared a business plan before, there are many useful resources available online to help you get started.
A carefully prepared business plan will contain financial projections which will help you determine if your proposals are viable or if there are certain aspects that require tweaking to improve profitability. This will make the process of seeking external financial assistance easier by giving potential investors a good idea of what your business will involve and whether it is worth backing.
One other thing that would be business owners should remember is that their business plan is not a set-and-forget project. You should continually update your business plan to reflect changing circumstances and to enable you better to meet the challenges that all businesses are confronted with from time to time.
Apr 23, 2013
You have probably heard of Forex, or if not, you have heard of foreign exchange trading. They’re both the same thing, worldwide currency trading which is dealing with trading different countries money.
The concept of the currency markets
The idea behind Forex is to purchase money from one country, and then exchange it for another currency from another country in order to make a profit.
This market is worldwide, every currency in the world is traded on the foreign exchange trading market. This means you can purchase money for Africa, and as it rises and your money increases, you can trade it off for money from England.
Forex is highly volatile
This market is extremely active, and the rise and fall of the currencies can happen within minutes. This means in order to be a success at this you have to have a long-range foreign exchange trading plan.
Trading willy-nilly on the Forex market is not suggested by any type of Forex trader or financial advisor, in fact, you can lose money so quick on the market that you don’t even know what happened.
Equip yourself with the right trading skills
If you’re interested in Forex trading it’s vital that you become knowledgeable concerning how these trades happen and how you can make a profit. It’s also important that you understand how you can lose your money in the Forex trading market.
There are plenty of information sources available on the Internet, there are forex websites, e-books, video tutorials, and of course, professional traders.
It’s vital if you’re considering the foreign exchange trading market as an investment practice that you completely understand how volatile this market can be.
Diversify and mitigate risk
In other words, don’t put all of your investment dollars in the foreign exchange currency market, things happen very quickly and it can all be started through political statements, breaking news, or an increased or decreased in the country’s economy.
Apr 22, 2013
These days with banks adopting a stricter lending policy, applying for a mortgage is not much fun. It can be especially stressful if you think you have found the home of your dreams but are not sure if you will be able to get a mortgage because of a poor credit history.
However the signs are that things are easing up slightly in the mortgage market, so if you follow our great suggestions you should find it possible to get the deal you are looking for.
Scour the market
Just as you would shop around for the best deal in a new car, TV or other household items, it makes complete sense to do your homework before applying for a mortgage. After all, in terms of financial commitment it dwarves any of those other purchases, so it’s important to get it right. The mortgage market is extremely complicated and competitive at the moment. If you are doing the application process on your own, it will do no harm to let prospective lenders know you are looking elsewhere. This should encourage them to pull out all the stops to secure your business. Alternatively, you may prefer to let a mortgage broker deal with this for you.
With such a variety of choice out there it’s important you know what you are talking about so that you can compare like-with-like. The jargon used by banks and building societies can be a little confusing. Learn what the most common terms mean, so that you can be sure any comparison you make is accurate and, just as importantly, that you appreciate and understand exactly what you are getting into.
Make sure your credit report is accurate
As part of any mortgage application the bank or other prospective lender will pay close attention to your credit report. However, very often these reports can contain mistakes and inaccuracies. That’s why it is important to check your credit report yourself before you start the application process. That way, if there are any mistakes you can have them corrected before the bank or other lenders needs access to your report. At the end of the day it can be stressful enough applying for a mortgage without finding out you have been turned down because of misinformation on your credit report.
Apr 13, 2013
When you take your first tentative steps trading in the stock market it can seem very exciting, but also very nerve-wracking. The upside of being a successful investor is enormous, with the potential to be able to give up your day job and devote yourself full time to your new found passion. Equally however if you get things wrong it can end up costing you plenty. So when you are jut starting out it makes sense to take on board as much good advice as you possibly can to help you make the most of your trading activities and, just as importantly,to avoid the pitfalls that can trip up the unwary
The first thing you should do when you start out is pick a budget – an amount you can comfortably afford to devote to the project – and stick to it religiously. Those who are new to trading have a habit of raiding their personal savings if they make losses at the outset. This is a surefire way to end up losing your shirt. Put aside an amount for your trading activities and do not invest beyond this amount. In effect you are working with a sum you can afford to lose.
The more knowledge you have about trading the better, so find out everything you can about the topic and make sure you devote some time regularly to keeping your knowledge up to date. There is a vast amount of information available online. Subscribing to a specialist magazine or periodical is also a good way to keep to yourself informed.
If you have a local investors club then it is a good idea to join this as it provides an excellent forum to exchange ideas. If there is no such club nearby try to see whether you can hook up with someone more experienced. You may be able to find someone online – perhaps on a specialist blog or forum – who will be amenable to mentoring you at the early stages of your trading activities.
As with any hobby, try to remember to enjoy yourself. If you find that trading or the research and preparation you need to do to become successful is in fact a chore, then this may not be for you. You are much more likely to be successful if you actually enjoy the legwork which goes into any successful investment strategy.