Tag Archive for personal loans

Savings – The Forgotten Art

December 16, 2011 admin No comments

For a long time, Americans were encouraged to buy, buy, buy. They were told it would stimulate the economy. Savings were down, spending was up.

With the current economic crisis and credit crunch, Americans have pulled in the reins on spending. They are working on paying down debt and trying to survive in a shrinking economy.

The fact is, people have not saved enough money for the current economic crisis. With adequate savings, people could save their homes from being foreclosed. They could ride out being laid off from work until they find a new job or start their own business.

Statistics tell us that 5.2% of American families have a savings account, with an average of $1,200 in savings. $1,200 will not get anyone very far in today’s economy. For most people, that is less than the living expenses for one month.

Now, there is a problem with the typical savings account. When you save in fiat currency (dollars), what happens is that even though you have done a good thing in putting some money away, the inflation rate grows faster than any interest the bank will give you. Therefore, you effectively lose purchasing power.

What is the alternative?

You can have a gold backed savings plan. In this case, you actually save in gold. You can get on a monthly purchase plan and buy some gold every month and save it, just like you would if you had an automatic monthly withdrawal from your current paycheck into your current bank savings account.

The difference is, this is savings in gold. Gold has had a 22% average return so far in 2011. Therefore, unlike losing value when saving fiat currency, saving in gold allows the value of that gold to reflect the decreasing value of the currency, so you do not experience the loss you would experience in paper money.

Can you save just any kind of gold? No, government issued gold can be confiscated by governments. It is wise to save in only a certain kind of gold.

It is time for consumers to begin to think about saving and start saving on a regular basis. There are options for saving in gold. However, consumers must educate themselves so they do not buy the wrong kind of gold and later have buyer’s regret. It is important to do a thorough study before buying gold so as not to buy the wrong kind of gold.

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Early Retirement Planning Ideas

December 16, 2011 admin No comments

It seems no matter where you go these days some one is talking about early retirement. Most working age individuals seem to want to get out of the rat race as soon as possible but don’t know that in order to do so they will need to do some early retirement planning. For early retirement to become a reality and not just a dream careful planning needs to be done, you need to start saving early and be disciplined to achieve your goals.

First you need to figure out how much your life is going to cost you, if you are retiring early then you will still be quite active and may require more discretionary funds then a person who retires later in life. Most people in retirement need about 70-80% of their re-retirement income, but if you plan on doing say a lot of traveling you may require more. You should also consider your retirement in two stages. First make sure you’ve saved enough in your registered plans such as RRSP’s, LIRA’s, TFSA & pension plans in Canada or 401(k)s, IRA’s & pension plans in the United States.

Once you’ve figured out how much you will need after age 59 in the USA or 60 in Canada including long-term health care costs then you can start to figure out the period of retirement before this. If you have maxed out your contributions to registered pension plans than you can start save money in a non-registered investment account. You should consider investing in assets that reward you to own them for example by way of a dividend.

In Canada if you invest in qualified Canadian corporations that pay you a dividend you will pay a reduced rate of tax than you would on say employment or interest income. In fact with an annual income under $40,970 in 2010 you would pay little to no Federal tax at all on your dividends from qualified Canadian corporations.

Early retirement planning is key if you want to achieve your goal of retirement at a young age. A solid plan for saving money is the only way you will be able to achieve it short of winning the lottery, you must be disciplined in your approach and review your plan yearly to make sure you are on track to meeting your savings requirements. You may need to make periodic adjustments to your plan as your life changes. No one said it was going to be easy but if your goal is to exit the 9 to 5 daily living you’ll need to make sure you stay on track.

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Personal Loans for Those With Bad Credit Provide a Route Out of the Credit Quagmire

December 16, 2011 admin No comments

These days can hardly be described as a joyous time when it comes to all things financial. Lenders and borrowers alike have been forced into taking extreme action in order to avoid financial ruin. Borrowers in particular have felt the pinch, as their attempts to recover their good credit rating are frustrated. Happily, there are personal loans for those with bad credit, though they may take a little time to find.

It might seem strange that lenders are willing to provide personal loans with bad credit when clearly they need greater certainty that their loans will be repaid on schedule and in full. However, there are two reasons why they are willing to take the plunge.

Firstly, the borrowers are so eager to reclaim their high credit scores that they are less likely to take a lax approach and miss payments. Secondly, applicants know when they need a loan with bad credit that the rates will be higher and the terms not ideal, but they are willing to accept that. Therefore, there is more profit for the lender.

Of course, the reason why these two conditions exist, and that lenders can trust their borrowers, is that many people with low credit ratings are victims of the times rather than irresponsible with their finances. So, even with personal loans for those with bad credit, the borrowers come with good habits, making them less of a risk.

How It Works

Taking a loan out to rebuild a low credit rating is not as illogical as it seems. Personal loans with bad credit are granted on terms that are slightly different to normal ones, but so long as the monthly repayments are affordable and the schedule is kept to, the benefits can be achieved.

The simple fact is that people who need a loan with bad credit are usually not without an income, which means that repayments can be made. Of course, it is necessary to be sensible about this opportunity and seek the right size loan.

Personal loans for those with bad credit are designed to help the borrower, so a small loan that is quick and easy to repay is the best first step to take. If a loan of $5,000 is taken out, for example, it can be used to clear credit card debt and be repaid over the course of perhaps 12 months.

The repayments may be around $500 per month, but the speed with which the personal loan with poor credit would be cleared would be a gold star as far as credit rating is concerned. What is more, with credit card debt cleared the benefit is double.

Loan Conditions

It is important to pay attention to the conditions of any loan, and for those who need a loan with bad credit, there is the added concern of penalties that may arise for being late with repayments. There is also the matter of the higher interest rate.

There are ways around this, however, with better rates offered for all secured loans, even personal loans for those with bad credit. Of course, secured means that collateral is provided so there is something tangible at risk should the borrower fail to make the payments.

Perhaps a better option is to apply for a personal loan if you have poor credit with a cosigner to strengthen the chances of payment. A cosigner guarantees payment should the borrower find it difficult to do so. For those who need a loan, with poor credit a particularly debilitating factor, this is probably the best option.

Interestingly, the best place to find personal loans for those with bad credit is the internet, with online lenders offering far better rates than traditional lenders, like banks. Searching for deals there is faster, more comprehensive and ultimately better in the long run.

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