The Limitations of Unsecured Loans

If a person wants to start a business anywhere or even if a person to expand their own existing business then this may require money. In various circumstances individual has to borrow it from the third party who provides finance in the form of business loan or one can even approach bank or any other place which can provide a suitable loan.

In the financial market there exist two types of loans i.e. secured loans and unsecured loans. Basically unsecured loans are those loans which are provided to the person without any collateral i.e. they are not asked anything in return and the vice-versa takes place in secured loans. Generally, in this unsecured loan there occur chances of risks for lenders, however for this risk they are able to charge high rate of interest from the borrowers and thus earn huge amount of money. Although borrower good credit gives assurance that a people is capable of repaying the money, but most of the times it may occur as a risk factor for the lenders to get their money back as there’s no element are being collateral by the people. So, in order to overcome this situation several limitations on unsecured loans are made in different countries by judicial members. The most common limitations are:-

  • In real estate sector, there’s a schedule driven by board directors of company for unsecured loans process, thus the lending limits should not het exceeded by the schedule.
  • The limits for unsecured loans should be different for each member and the limits assigned should be according to the necessity of each member who wants loan and that inspection should also be done to the member in order to know that the creditor is actually worthy.
  • Based upon prudent practice of lending and procedures, all loans must be granted to any member. And there should written policies of lending and procedures that are prescribed by the directors must be taken into account.
  • Sometimes, the limits can be extended of the schedule for the member’s by examining the need of members and evaluating their unencumbered accounts of share.

Each country has their own limitations for their unsecured loans in order to make the unsecured loan lenders get rid of risks. Thus providing unsecured loans could be beneficial or sometimes generates risk too.

How To Use a Price Comparison Website

There are a lot of online stores that sell almost any product on the internet. Online shopping has been in the trend since a few years and will only grow further in the coming years. As there are a whopping number of products sold by thousands of sites and sellers, it is actually quite difficult in choosing the right product, seller and also the price. Hence the price comparison websites have come to the rescue as they enable us to compare the products and prices found in different sites.

By making use of these price comparison websites or even search engine tools people can save their time and effort spent on hunting for the best product and the best priced seller. It helps them to save a lot on their pockets. Here are some guidelines on how to make use of those price comparison sites and save money on your online shopping.

The price comparison sites work by placing each product in its own suitable categories and sub categories that enables the user to narrow down their search and easily locate the product they need. Apart from categorizing the products in their respective areas, the sites also have a search tab where users can type in the name of the product directly into the search box and click the button to find the product and the respective sites where it is being sold. You can refine your search term based on the price range or brand name or other filters.

After finding the brand or manufacturer name of the desired product, type the product name in the search tab. When the results are loaded, look for the lowest price offered and also the ratings of the store or seller.

Now you have found the right store to buy the product. Click on the link to the store and ensure that the same price is offered on the store’s website also and also cross check with the shipping charges and other hidden charges involved with the product.

Make use of these price comparison sites frequently while shopping online to grab the best deals.

Coping With Rising Energy Prices

In a news report by The Guardian, according to statistics by Citizens Advice, risings in energy prices are up to eight times the rise in your average salaries! Quite an alarming figure, that is.

We are all aware that existence with energy supplies is impossible on the planet of ours. Every minute step that we take is essentially because gas and electricity does exist. As if the inflation in prices continues at this rate, will we be able to cope with it? So can we do? How do we deal with the rising energy prices?

Here, is a list of tips for you to follow:

To save on your electricity bills, switch to CFLs:

Replacement of light bulbs with Compact Fluorescent Lightbulbs is one of the quickest, easiest, pocket-friendliest and best ways to cut down your bills by $35 per bulb and your energy losses by 75%.

CFLs with Energy Star labels shout go green! They are energy efficient and best of all, recyclable.

Avail fixed energy tariffs:

The appeal of fixed energy tariffs in immense – for such plans, your supplier will offer you a fixed price over a certain period of time. It helps you to remain within your budget, keeps you alert and helps you save up to 15% on your bills. You know exactly how much you are going to pay at the end of the day.

Few tips to reduce your gas bills:

  • Seal air leaks regularly with spray foams or weather stripping to only let the desirable air in.
  • Upgrade your heating equipment regularly and change air-filters whenever possible.
  • A programmable thermostat will reduce heating and cooling whenever needed, without you being aware of it.

Go green:

Develop a greener household through natural gas usage, which can reduce your energy expenditure by about 41% and your carbon footprints by 28%. Households should also make it a point to upgrade insulation, doors and windows and strive to get an LEED rating which certifies buildings as less energy consuming and environment friendly.

Ask companies for special deals:

If you have managed to find yourself in a financial mess, ask companies to acquaint with the deals that they have to offer.

Or, you may also change to online bills which are said to reduce your payment by 10%.

How to Lower Your Bills

Human race has flourished in the face of several odds: the harsh weather conditions of ancient world, the fear of wild animals, and the vulnerability in times of natural disasters, wars and the havoc they have wrecked time and again, political disturbances and revolutions, strain in global trade and fluctuating economy. Of all these odds the last one has affected mankind like none other: the rising prices of commodities and services as a consequence of economic inflation has had an immense effect on the quality of life and demarcated the haves and the have-not even more triumphantly. Unemployment and loss of livelihood has become rampant. Saving on bills has become a necessity for modern man who is incessantly squeezed between his high-end aspirations and constant failures due to the declining global economy.

1. Saving on Energy Bills:

  • One should switch from using standard incandescent bulbs to compact fluorescent bulbs or CFL’s which are energy-efficient, long-lasting and consume negligent power by generating negligent heat.
  • One should remember to unplug all unused electrical devices from time to time. Unknown to most people these devices use up “phantom charge”, a small but constant amount of electricity as long as they remain plugged into the electrical sockets.
  • One must regulate the temperature of thermostats and air-coolers from time to time. Dependence on these devices can be curtailed by a simultaneous use of blankets or fans respectively.

2. Saving on Communication Bills:

  • One can easily bring their phone bills under budget by scrutinizing the tariff plans they are provided by the Telecommunication Providers. For instance switching to a more cost-efficient plan by eliminating unnecessary facilities is advisable.
  • Switching to internet telephone services can save money especially for those who need long-distance communication on a daily basis.
  • Skype or Google Hang Outs or even WhatsApp Voice Calling services can be extremely useful in reducing phone call charges.

3. Saving on Entertainment Bills:

  • One must lower their cable bills by reducing the hours they spend on watching television and also by eliminating unnecessary channels which one does not prefer to watch.
  • Cancelling unnecessary Club Memberships and using that money more judiciously on other less expensive activities can reduce the monthly Bill amounts.
  • Switching from monthly subscription of newspaper and magazines to their internet versions (e-newspaper and e-magazines) is something which all of us should consider doing. It not only saves paper, but also reduces unnecessary expenditure (since most of the time the internet versions can be subscribed without paying additional costs). Also sharing newspapers within a close-knit neighborhood is a wise decision.

4. Saving on Miscellaneous Bills:

  • Instead of hiring a household help for doing odd chores at home and spending hours in the gymnasium for exercise, one can try and do the household work such as washing, cleaning, laundry, cooking on their own. It reduces expenditure on several accounts.
  • One must consider eliminating their unhealthy consumption habits such as smoking and drinking. It not only affects their health, it also digs deep into the pockets.

For more information on long term lending contact today.

How to make your credit score better

Credit score is a measure of how worthy a person is for lending him credit. In other words, it tells the banks and other lenders on your reliability as a borrower. This score becomes a key factor when the bank issues you loans or credit cards. A low score might prevent you getting the loans that you might require when you decide to buy a house or car. A high score will save you money that you would be paying as interest over the lifetime of the loans. This score lies between 300 and 850.

The credit scores are generally made from the data present in your credit reports. One way to improve your credit scores is to make sure that all the data in your credit report is legit. The most damaging ones are the mistakes relating to late payments or the missed ones. Late payments and missed payments show an inconsistency of the borrower and lower the credit score. Sometimes the inconsistency of returning your library books might also have an effect on your credit scores.

Having credit balances spread across different credit cards may feel like a positive thing as there is no high withstanding balance but this can also be a detrimental factor to your credit score. As contrary to popular belief, having a history of taking debts is not necessarily a thing that would decrease your credit score. In fact, a well handled debt that has been paid off in a timely manner is good for improving your credit score.

An important thing to factor in while in a tight situation is not do something that would show a varying trend in your activities. Even when things are going downhill financially, maintaining status quo becomes essential especially with payments to maintain your credit score. Using cards might sometimes reveal that there an impending money stress in the near future. Revealing a Divorce issue where you are being sued for half your worth is not helping your case.

Timing your loan inquiries properly could help maintain your credit score. Each request for credit decreases your credit score and taking multiple credits over the year would add up and cause immense damage to the credit score. The calculations of these scores consider a shopping period and all the credit applications in this period will be counted as a single inquiry and not reduce the score by much.

Having a good credit score is vital to get loans while making major life decisions like buying a house etc. Hence, it is important to keep these in mind while going about your daily life and take care to improve and maintain a good credit score.

For more information on long term lending contact today.

Debt Help

More and more people are finding themselves in financial difficulty. With the cost of living rising but wages staying fairly consistent, it’s no wonder that people are looking for credit to meet their financial demands. But you don’t have to settle for being in debt. There is plenty of support available if you find yourself struggling, you just have to look for it. Let’s take a look at some of your options;

1. Debt Management. If you have multiple creditors and are finding it difficult to meet their minimum requirements monthly, a debt management plan could be the answer. A debt management company will deal with your creditors directly on your behalf, you will make one affordable payment to them and they will then disperse that amount between your creditors. By opting for this service you only have one payment going out which covers all your debt and you don’t have to worry about remaining in contact with lots of different companies that you owe money to. Shop around before you decide on a debt management company. There are many that charge a fee for their service which is not the most beneficial option for you. Look into non fee charging companies such as Pay Plan or Step Change, to make sure 100% of your money is spent paying off your debt.

2. Don’t bury your head in the sand. If you choose to deal with your creditors directly without the help of a debt management company then you must be prepared to keep in contact with them. If you think you’re going to miss a repayment or you’re finding it difficult to meet the amounts they are requesting, communicate your issues. If you express that you’re in financial difficulty they have to work with you. FCA regulations are there to protect you when you’re financially vulnerable so don’t be afraid to ask for help. If you miss your payments and ignore correspondence and calls your debt will only increase with interest and charges and you will only make your situation worse. Voice your problems and creditors will work to resolve them.

3. Get some advice. There’s so much help out there that can offer ways to you get out of debt yourself. Search the internet for debt help advice and speak to financial advisors. Additionally, speak to your friends or family. For some people, debt can be an embarrassing and sensitive topic but most people at some point will experience such financial difficulties. Ask for their advice, air your issues and come up with a realistic plan of action to get debt free.

Make 2015 the year you get debt free. Do your homework and set out realistic debt clearing goals so you can start getting back on top of your finances.

Ways to Save Money and Budget

Most people spend more than they would like to each month and though you may think you’ve budgeted, you’d be surprised how quickly a couple of pounds here and there can add up. Most money saving tips only save you small amounts at a time, but if you adopt 4 or 5 of them then you will notice a significant increase in your savings account. Here’s a few to get you started;

1. Firstly, are you getting the most out of your current account? With so many different banks and building societies offering current accounts it can be difficult to decide on one that is beneficial to you. It’s worth finding out whether you’re getting anything back from your account. If you’re not, don’t be scared to switch! Current accounts are particularly competitive and many offer insurances and even cashback. Do some research and start saving just by having your wages in an account which gives you a return.

2. If you don’t want to open a new current account, look into a cash ISA, earning interest on your savings. Preferably opt for one which will only allow for one or 2 withdrawals per year and gives penalties for anything more. That way you will not see that money as disposable, more non-existent and the interest will keep adding until you’ve got a stack to be proud of!

3. Pay off your outstanding debt. Theirs is little point trying to save long-term if you have multiple debts. Most will have high interest rates meaning if you’re only meeting minimum payments, a very small percentage of the debt will actually be being cleared each month. Get rid of outstanding credit and then start saving once you’re in the black.

4. Try the age-old technique of a change jar. At the end of each day empty your wallet of change and watch it tot up. It’s a better way to see the pennies you’re saving than just viewing numbers on a screen. At the end of the month, take it to the bank and deposit it into your savings account and then start the process again. Even if it’s only £30, it would’ve only been frittered away if left in your purse. Over a year, that’s £360!

5. Keep on top of your tax. It’s worth working out whether you’re owed tax at the end of the tax year. If you are it could mean a healthy cheque straight into your savings account. It’s unlikely to land in your lap and may be up to you to chase by contacting HM revenue and customs but if you’re entitled to it then they have to give it to you. See it as money that you’d budgeted without and put it straight into your savings.

6. Finally, deal in cash. Studies show that we find it far more difficult to part with physical money when compared to just handing over the plastic. We are much less likely to buy whatever it is in question if we have to break a note so take out an amount at the beginning of the week and leave your debit card at home. Tell yourself once it’s gone you cannot withdraw any more money and that way you know you won’t exceed your budget.

Saving doesn’t have to be stressful. By making a few changes to your financial routine, you’ll notice your savings account will look healthier than ever.

For more information on long term lending contact today.

Pocket Money

From the age of about 10 until my first job at 15, I was given pocket money every week by my parents. In order to ensure my £1 was waiting for me when I finished school on a Friday afternoon, I had to keep my room clean and tidy and unload the dishwasher thrice weekly (I think we can agree the tasks were not particularly arduous). None the less I had to earn my wage; it did not come for free. The amount gradually went up to £10 over the years, it was my sole income and once it was gone, it was gone.

What did it teach me? My parents have always been particularly money savvy and my sister and I have always been lucky enough to attend every sports group we wanted to, get that toy we’d been lusting after for weeks (eventually) and been swept off for a family holiday every year since as long as I can remember. They do not earn huge amounts, but are comfortable as a result of understanding and accepting their financial limits and budgeting and saving accordingly. Since that first £1 was rewarded to me, the concept that you earn your own money was engrained. I would always wish that money grew on trees however thus far I have yet to discover said tree species so I have wholly complied and have been employed since I was 15. I genuinely believe my work ethic comes from early, financial knowledge from my parents via the process of receiving pocket money.

I soon learnt that should I empty the dishwasher every night of the week I would be rewarded with more money (overtime). Once I was earning £2 every Friday, I never emptied the dishwasher less than 7 times weekly so in hindsight my parents had a live-in kitchen porter for a mere £8 a month. See, this actually benefits you as parents more than you would think!

It also taught me the concept of having a regular income, which I was in control of. I learnt how to establish the difference between needing something and wanting something because I knew that I would not get any more money until the following Friday. There was no option to get my pocket money earlier, so I had to make it last. My parents were consistent and fair so if I had washed the car that week, I would always be paid for my efforts, just as if I left my bedroom looking like a war zone, I would not be. Luckily, I am particularly money driven so this approach worked with me. It wasn’t about bribing me to keep up with chores and help out around the house, it was about teaching me that something does not come from nothing. If I did not do the chores I would simply not get paid. It instilled in me that I am the only person in control of my income. Hard work correlates with high reward and a feeling of self-fulfilment. You go to work and then you get paid and that was good enough for me!

I would advise all parents to offer pocket money. The amount you are willing to give is fairly irrelevant and will be different for different families depending on income. It should also balance with what they have to do to earn it. For example, giving them £50 for taking out the bins isn’t really teaching them anything, nor is rewarding 20p for vacuum cleaning the whole house twice over, they just won’t do it again. You make the rules but keep them consistent and your children will quickly learn the value of money, setting them up to understand the importance of budgeting and spending within their means. In the meantime, I’ll keep an eye out for that money tree!

Emergency Fund

It is always useful to put money into an emergency fund every month. There are two main reasons for this; unexpected loss of income and unforeseen expenditure such as car and home repairs or illness. Particularly if you have a young family whom you are financially responsible for, having an emergency fund acts as a buffer in times of need and gives you the breathing space you need to get back on top again.

The amount of money put aside in the case of an emergency will differ between different people. Larger families will need to budget more to cover higher expenditure than someone responsible for only themselves. Additionally, it’s important to recognise that should such a situation arise whereby you need to use the fund, as little as necessary should be used, so that it can be replaced easily. The idea is to see it as a buffer, not an opportunity to go on a family holiday!

When calculating a realistic amount, take into consideration the following things; ‘non-negotiables’ and ‘not-necessarys’.

‘Non-negotiables’ are your household bills that need to be paid monthly to ensure you maintain your repayments and do not put yourself at risk of accumulating debt. Your rent/mortgage, electricity, gas and council tax are just a few examples of these. To begin, the fund should cover these entirely.

Your ‘not-necessarys’ include things like the magazine that you have on subscription that goes out of your account monthly by Direct Debit. Should you find yourself in financial difficulty, sit down with your bank statement and cancel anything which is not a ‘non-negotiable’. Your emergency fund should only be used to cover essential costs. All can be put back in place once you are financially stable again.

In the event of loss of job, it is recommended your emergency fund covers you until you can find another. Your fund should be equivalent to approximately two months of your wages, giving you 8 weeks to start earning again, although some people prefer to have more and others not so much. Just remember the more you have available, the more financially secure you will feel.
Finally, consider keeping your emergency fund in a cash ISA as they generally have higher interest rates. This way your fund will increase whilst it’s sat doing nothing! Most only allow you to withdraw or transfer money a couple of times a year without penalty, so you will not be able to use it as you would your current account. Do your research and find the ISA which is best suited for you and your situation. Start budgeting for your emergency fund today.

Sensible spending is an approach that all of us at PiggyBank are in favour of. We are a payday loan direct lender,  and our service is designed to offer responsible lending to those who are in need of short-term loans and able to pay back within fixed and agreed repayment terms.

Low Inflation Nation

When things are tight, then the idea that prices are going to drop is good, right? Well, yes, it’s great to be able to buy things at an affordable price. Over the last year, there has been a 10.5% fall in the price of fuel and a 1.9% fall in food prices. However, money minds have long been worried about the dangers of deflation, even though cheaper fish fingers are cause for celebration by most of us.

So why? The problem with deflation is lack of demand. If shops aren’t selling anything and are forced to drop their prices as well as pay more for imports due to a weak pound, then it’s likely that they also have to cut jobs or wages. And so although the price of goods in the shops cost less, when you’re out of a job, the chances are you won’t be able to afford to buy much anyway. Which then causes more deflation.

A full recovery in the economy any time soon seems unlikely, despite millions of pounds worth of money being created to try and resolve the problem. Wages have barely risen, and jobs remain scarce across much of the UK outside of London. And the problem is not just confined to England, it’s happening across the world. For the moment, these falling prices are very welcome, and deflation could even increase consumer spending as prices fall. But if wages and prices drop too, then this isn’t good news.

For a payday loan or a short term loan, contact us for more information.