Archive 2019

The Four Good Reasons Why You Need a Loan

Personal loans are borrowed money that can be used for large purchases, alleviate financial hardships, or even just supplement for an expensive occurrence. These loans are paid back in monthly installments over the course of typically two to six years, but it can take longer depending on your circumstances and how diligent you are with making payments. Although it may seem frivolous to take out a personal loan for, well, personal reasons, it can be hugely beneficial in certain instances and when used and paid back correctly.

Debt Consolidation

Debt consolidation is one of the most common rationales given for taking out a personal loan. Imagine carrying multiple loans or outstanding credit cards that all have varying interest rates and balances due. That’s a recipe for financial trouble, and it’s also where personal loans can step in to help.

When you apply for a loan and use it for debt consolidation, you’re combining all of those outstanding balances into one monthly payment. This grouping of debt makes it easier to work out a timeframe to pay off your balances without getting overwhelmed.

One of the best advantages of using a personal loan to pay off your credit cards is the lower interest rates. With lower rates, you can reduce the amount of interest you pay and the amount of time it takes to pay off the debt. Consolidation allows you to pay off credit cards in finite terms with a clear end date in sight.

Financial Backups During Hardships

If you’re facing financial hardships, you may be tempted to take out a payday loan to help you get by in the interim. However, payday loans are often predatory and can leave you much worse off than before. Therefore, before pulling the trigger on a deal with a payday lender, consider a personal loan instead.
Though payday loans may be easy to get, they carry extreme risks if you can’t pay back the amount owed in the time agreed upon. Some payday lenders charge interest rates over 400%. Personal loans like joustoluotot, for example, on the other hand, are typically more straightforward and incur much lower APR rates.

Financing House Remodeling

A personal loan can be a great option to pay for home remodeling, according to Kristin Shuff, senior vice president of marketing at LightStream, an online lending division of SunTrust Bank.
Whether you want to put on a new roof, install solar panels, remodel your kitchen or add a swimming pool, hot tub, landscaping or hardscaping, if you don’t currently have the cash on hand, a personal loan can be a big help when it comes to home improvements.
Furthermore, a personal loan is a good fit for people who don’t have equity in their home or don’t want to get a home equity line of credit or HELOC, Shuff says.


Some people forget to talk about funeral expenses when discussing the main reasons for personal loans. Though it may be an area that is uncomfortable to consider, personal loans can be a helpful resource in the event of a family member’s death. In short, funerals are expensive. Between the burial plot, casket, funeral home services, and other factors, costs can quickly add up to thousands of dollars.

Common medical treatments that may require the use of a personal loan include dental work, cosmetic surgery, fertility treatments and other procedures that can cost $5,000 or more. Ancillary expenses like medical travel, parking, medications and aftercare also can be effectively financed by a personal loan.

Proven Wealth Building Strategies

wealth building

If you interview several individuals and ask them what wealth is, you’ll get varied answers. Some people view wealth as owning vehicles, properties, or a lot of money. To put it correctly, being wealthy is having a wealth mindset. You can acquire riches, but you can’t sustain them if you lack the right mindset.

The wealth mindset doesn’t come naturally, neither do you learn in this in school, additionally you may also not replicate what others are doing effectively. Fortunately, you can rely on proven wealth-building strategies to attain sustainable riches. Consider the following tips.

Save and Invest

When you get unexpected money such as pay rise or bonus channel this money into your investment account or invest in a reliable venture. You should learn how to save and invest in your early years. Most wealthy individuals started investing in their 20s and 30s.

Get Out of Debts


Material possessions don’t translate to wealth. You may have many possessions, yet you’re deep in debt. Many individuals seem wealthy but aren’t. This is because they have acquired their riches through debts. The initial step of building wealth is to get out of debt. When you’re in debt, you don’t have any money to invest.

Debt makes you stagnate in wealth building. Work your way out of debt and start investing. It may take a couple of years to realize this objective.

Never Rely On One Source of Income

If you research wealthy individuals, you’ll realize they don’t rely on one source of income for their livelihood. They have diversified in several streams of income to minimize risks and create more avenues for generating revenue.

For example, you may find a person is employed permanently; they have a part-time job and a side business. In case one of the sources of income freezes, the individual may still be able to pay their bills without any difficulties. This isn’t the case with those who rely on a single source of income.

Look for a way of increasing your income; you may open a business, or sell services on a part-time basis. Take the time and research on methods of diversifying your income.

Set Financial Goals

financial planning

Wealthy individuals don’t make money by mistake; they plan on how to make money. If you don’t have any financial goals, then you have nothing to work for. You must develop a clear and workable vision of where you want to be after a year, two, five, ten or twenty years to come. Develop the appropriate steps that will take you to where you want and implement these strategies.

Automating Your Finances

You can quickly build wealth if you automate your finances. With this option, you won’t have the temptation of skimping on your savings or paying certain bills.

When your savings are deducted directly from your paycheck to your savings account, you’ll have the discipline to save and invest. If possible, link your accounts such that money will go directly from your paycheck to your 401(k).

It’s the fact that everyone can become wealthy no matter their current financial status. But to attain the goal, one must implement practical strategies to achieve the goals.

Facts about Payday Loans

payday loans

Payday loans are short term loans designed for employed persons. These loans prove to be attractive to most borrowers due to relaxed laws on borrowing compared to conventional loans.

Have you ever been in a financial mess that the only option was a payday loan? Think of the application process — quite fast, the same as receiving the money. The main hurdle comes in the interest rates and the repayment period. Since the loans have less stringent rules, the interest rate is high. You will also attract penalties if you fail to repay in time.

Let’s unveil some facts about payday loans.

The Perpetual Cycle

loan approved

Payday loans can be addictive. Every time you feel you need some little cash, you have the option of applying for a payday loan to repay in your next paycheck. The fact that they are easily available becomes a trap for most borrowers. Additionally, you can repay the loan and reapply on the same day.

If you don’t have the money to repay the payday loan, you can also opt for a roll-over of the loan to the next paycheck after paying the interest for that month. Due to these features, most people never get out of the trap of ever borrowing.

Short Repayment Period

One main disadvantage of a payday loan is that they are only available for a short term; mostly one month. Interestingly the interest may be charged per day, weekly or biweekly.

The short repayment period and the high interest charged on these loans lead to many individuals defaulting on these loans and attracting penalties. If not most people will roll-over the loan to the next paycheck after paying the interest for the current month.

If you have a poor credit score and you can’t access bank loan, then getting out of debt or improving your credit score becomes a dream.

Hidden Information

advance cash

Though payday loans have a few advantages, most lenders hardly take their clients through the disadvantages of these loans; they only major on the benefits of securing payday loans. They’ll never disclose options that can make the customer opt for other types of loans. When you default on the loan, it’s when you discover you were not sufficiently apprised about the loan.

Before applying for a payday loan, make sure you know what you’re getting into. If you have alternatives such as the credit union, advance cash on your credit card or a bank loan go for such options; they attract fewer fees through the rules governing the loans are stricter.

Payday loans are easy alternatives for many individuals, especially if they have a poor credit score or they have over-borrowed. But before opting for a payday loan, get adequate information about the loan beside the benefits.