What Are the Various Categories of Personal Loans and Their Usages?

Demonstrates the Advancement

The advent of the signature loan clearly demonstrates the advancement in loan processing. As the name signifies, the signature loan is the one where the person applies for the loan and just signs a promissory note to pay back the loan within the stipulated time period. The time which is specified is called the loan term. This may be 6 months or even 5-7 years, depending on the parties involved. Anyone willing to take signature loan will need to have a great credit history. The borrower’s assets are not considered to that extent. The rules and regulations vary. Certain loans need the borrower to have a good credit history while others need both sound credit score and accounting for asset. Documentation is required to show the number of assets held by the borrower.

Documents

Payday loans have become most popular in today’s time. The market of cash advance loan or payday loan is getting popular since the borrower gets quick access to cash amount. Apart from this, the borrowers need not have a sound credit score. Least bit of credit criteria is needed for the approval process of the loan. Just by submitting identity proof, proof of income, residential proof and other documents, the approval will be attained. Most of the companies offer this kind of loan without any documents and proofs.

 

Credit card loan is the popular form of personal loan which is also known as cash advance credit card loan.

The loan process is again very quick and the general public can meet the emergency needs instantly.

It has the major drawback that the interest rate is higher here when compared to other kinds of personal loans.

You can enjoy cash advances from check cashing facility, ATM machines, etc.

Wedding loan is the latest kind of personal loan which helps one meet wedding expenses.

It has carved out its niche in the loan industry as it meets the wedding expenses on your behalf.

Personal Loan

Wedding expenses may even move up to 6 figures but since it is the most important event in the entire life one cannot make compromises. This kind of loan may be both secured and unsecured. A lot is dependent on the amount of loan and the term period.

Recreational, automotive or vehicle loan is another kind of personal loan. This is the non-signature loan where financial lien is laid against an asset to acquire the loan. Since the loan is offered by the automobile manufacturers most of the times, the interest rate is very low.

Cut Summer Air Conditioning Costs with These Simple Tips

Cut Summer Air Conditioning Costs with These Simple Tips

Heat is not the only thing that scorching summer brings with it. As soon as the first gust of hot winds reaches us, our energy bill skyrockets. We know that sometimes it feels like air conditioning is the only source of comfort in summers and there is no other way other than suffering from its high cost. That’s not quite true; there are ways to reduce the air conditioning costs and to have a cool summer simultaneously.

Read to discover various simple yet effective tips to cut down the air conditioning costs.

1.    Use Fans

Installing ceiling fans in your house will help you cut down on the AC cost by a large margin. Ceiling fans do not replace the AC but they do puts less strain on them. They circulate the cool air around and reduce the need for air conditioning. One of the best ways is to turn the AC on for a few hours and then turn it off. The ceiling fan will circulate the cooled air around for a long time.

2.       Air filters

There are times when we feel like the AC is not working properly and keep it on for a longer period of time just so that it does the cooling well. While it rarely makes your home any cooler, it does, however, do a good job of increasing your electricity bill.

An easy way is to clean the air filter at least once a week; a clogged filter requires more effort from the AC and makes it costly. Just clean the filter and enjoy the summers.

3.    Buy a new one for the warmest room

We all have that one room in our house that somehow feels closest to the sun and just doesn’t cool off. If that room is used frequently and the thermostat of the central AC has to be turned low just so that room could be comfortable even if the rest of the house is in the Arctic zone then it’s a problem.  Buy a window or a low-unit AC for that room alone and use your central air conditioning unit for the rest of the house.

4.    Stop using the dryer

Not only dryer uses a lot of electricity to work, it also makes your house warmer. Therefore, instead of using the dryer so frequently, let the clothes dry naturally.

5.    Cook quickly

Another resource of unpleasant heat is the stove. Make it a habit to cook small quick meals and do it when the sun has disappeared. Also, use your microwave to do most of the cooking as it emits less heat. So take out all those ready-made packages and use microwave abundantly every summer.

6.    Some tips

Some other useful tips include:

  • Using blinds and window shades all the time to block sunlight
  • Keep the doors and windows sealed
  • Lights and bulbs are single-handedly one of the most heat emitting objects inside the house so keep them turned off as much as possible.

Following these above tips will not only keep your air conditioning cost low but will also help you keep a cool house throughout the summer.…

How to Save Cash and Avoid Payday Loans Altogether

How to Save Cash and Avoid Payday Loans Altogether

If you need to save money in a few months, you should try saving money instead of relying on payday loans to acquire it. The last anyone wants is to deal with debt and high interest rates. If you have already taken out a payday loan, do not fret, as you can save money to pay for it each month.

Payday loan lenders offer different repayments plans so choose the one that accommodates you. For those who are thinking to take out a payday loan should follow the following tips to save cash before a payday loan lender becomes their last resort:

·         Save Money on Utility Bills

Visit the Energy Saving Trust to use their home energy check feature. It is available on their site for users to use for free. You can save up to £250 on utility bills if you follow the site’s advice. The site’s purpose is to provide people with the best and most favourable deals on their utility bills.

You may also want to equip your home with LED light bulbs to save additional money on your electricity bill. In comparison to traditional light bulbs, you can save a lot of money using LED light bulbs. To conserve water, instruct your children, if you have any, to close the tap while brushing their teeth or shampooing their hair.

·         Save Money on Clothing Items

If you have a clothing item lying in your closet that you have yet to wear, perhaps, it is time you get rid of it. You can take your old clothes to an exchange store or you can make something new out of it. When you are out shopping for new clothes, visit charity shops or look for sales. If you have friends and family members who have outgrown a certain clothing item, ask them to give it to you. Never pick anything out of a clothing rack before looking at the price tag first.

·         Save Money on Transport

Why spend money on paying car payments and petrol when you travel by public transport? Public transport is cheaper and if you know someone taking the same route as you, you will have someone to talk to while on the bus. You can also travel by train if you do not want to take the bus. If you want to get fit while you make your way to work, you can ride a bicycle or go on foot.

·         Save Money on Fun

One of the easiest ways to save money is to plan for your vacation ahead of time. If you want to watch a movie, ask the cinema if they have a newsletter or any kind of system where they send alerts to people about decreased price viewings. You can look for festivals that do not charge an admission cost or explore a new city.

If you need money, do not apply for payday loans, but try to save money where you can.…

The Benefit of Tracking Your Spending

The Benefit of Tracking Your Spending

The median saving rate of Americans hovers at about 0 per month, and things aren’t any different in UK or any of the first world countries While this stat might appear shocking, it nevertheless paints an accurate picture of the spending habits of most of the individuals. And for most part, the reason not being able to save is simple – not keeping track of the expenses.

No one would want to go on a road trip without knowing where they are headed or what the destination is. Sadly, that is how most people handle their finances. We spend money in the account without giving any or much thought to where the money is going from the account.

Keeping track of the spending is a key component of effective money management.  Without keeping tabs on your expenses, you won’t be able to make efficient use of your limited financial resources. There are several reasons that you must keep track of your expenses.

Makes You Disciplined and Smart Spender

The act of tracking your spending makes you aware about how efficiently you are utilizing your money. It forces you to ‘think’ before spending money. In this way you become a more discipline spender and avoid wasting money on unneeded expenses. The more time you spent tracking your spending, the more ways you can think of saving more and earn more money.

2. Helps in Prioritizing Expenses

Another benefit of tracking your expenses is that it helps you to prioritize your expenses. By using budgeting tools and apps, you can get an overview of all your yearly expenses, and forces you to prioritize expenses according to their importance.

3. Assists You in Meeting Your Goals

The third important benefit of tracking your spending is that it helps you to meet your financial goals. You cannot reach your goals of saving for a dream vacation, owning a car, or building a sufficient nest egg for retirement without knowing your spending habits.

4. Prevents Financial Hardships

By keeping a clear view of your spending, you can avoid falling into a debt trap and remain financially in the green. Looking at your spending habits will make you disciplined and considerate as to how you spend your money. This will force you to spend within your means and avoid resorting to credit to meet your expense. The end result will be less financial hardship for your, and more financial freedom to achieve life goals and dreams.

5. Highlights Trouble Areas

When you keep tabs over your spending, you will be better able to identify trouble areas before they become into a crises. You will know what expenses are draining your bank account and adjust your spending habits accordingly.

On a final note, remember that the way you spend your money will determine your financial well being. If you spend on unneeded and wasteful expenses it will come to haunt you later down the road. It’s vital that you track your spending to avoid financial troubles that may wreak havoc in your life. The little effort will go a long way in ensuring that you don’t get yourself entrapped into debt trouble.…

When you Should Take Out a Long-term Loan?

When you Should Take Out a Long-term Loan?

Long-term loans are taken for real estate, equipment, car, and other similar major purchases. The loan amount is taken for more than one year. These loans are paid off in quarterly or monthly payment schedules during a specified duration.

Typically, the long-term loan is greater than £10,000. However, the loan amount does not classify a loan as long-term. Any loan that is taken for more than one year is technically classified as a long-term loan.

Financial institutions tend to classify long-term loans into two categories:

Intermediate-term loans: Also known as medium-term loans, they typically are paid back between two to ten years in instalments.

Long-term loans: These loans are generally paid back between ten to thirty years. The loans are usually secured by collateral and are paid back in monthly or quarterly payments. Long-term business loans usually have terms that limit the amount of additional funds the business can take during the duration of the loan. In addition, businesses may be required to set amount certain percentage of profits to repay the loan.

Uses of Long-Term Loans

Long-term loans are usually used for major expenses such as buying a house, a car, or capital expenditures. The term capital expenditures refer to large expenses that generally improve income generating ability of a company. It is also used for the construction of buildings, roads, and other facilities by large contractors.

Generally, rates for long-term loans are relatively lower than for short-term loans. However, a borrower would have to pay greater interest rates and other charges on long-term loans.

Situations When It’s Not Beneficial to Take a Long-term Loan

In certain cases taking a short-term loan is better as compared to a longer duration loan. Start-up costs for launching a new firm or new product should be financed by taking short-term loans. Taking a long-term loan is not recommended in such a situation as there is no certainty at this point of time about the success of the business idea.

Another situation where short-term loans are more advisable is to benefit from seasonal discounts from the vendor. For instance, the vendor might offer discounts during Black Friday or Christmas Eve. A company can avail the financial incentive by small infusion of capital.

Also, businesses that want to purchase equipment for meeting temporary seasonal demands should utilise short-term loans to lease the asset. In this way, they won’t have much capital tied in capital expenses.

Conclusion

Long-term loans help businesses and individuals to make major purchases. The best benefit of taking longer duration loans is that it makes the instalment amount much more affordable as compared to taking the same amount of loan for a shorter duration. Another benefit, of utilising long-term loans is that they result in less money tied to making the loan payments. The saved money could be better utilised in other more lucrative investment avenues.

That being said, there are certain situations where it’s beneficial to take a shorter duration loan. It’s important to consider the pros and cons before selecting a particular type and duration of loan.…