What is a personal loan? Some key points:
1) Either money or items that you have borrowed from someone, may it be an individual, group or organization
2) Consists of relatively high interest. If interest is low, it is likely more of someone doing a favor to you.
3) The creditor has a motive for loaning, mainly getting more interest or bonds.
4) Loan is usually taken to do something constructive and have long term benefits, example setting up business, renovating houses, furthering education, etc.
5) Personal loan is more flexible and can be used for personal consumption benefits
6) Unsecured personal loans are not productive in long run because they have very high interest rate and only very high risk investment can offset this interest.
7) Personal loans should be taken at the appropriate times to invest in long term investments, example real estates or shares for greater profits.
Loans should be taken when purchasing expensive necessity, for example buying cars. However, aim for low interest loans.
June 25, 2008
Get help with debt. It is so easy to get into debt, but not as easy to get out of it.
The first thing you need to do to get debt free is set a realistic household budget. List all things you have to spend money on i.e Gas – Electric, mortgage, then list all the things you want to spend money on. The goal is to separate between ‘Need’ and ‘Want’ for example you ‘need’ to eat or you ‘want’ that new cd.
The idea is to look at you outgoings and see where you can make cut backs, set yourself a shopping budget for food. Some examples of how to save money on groceries, household bills.
1. Ask your supermarket what time they mark down there products, and purchase these when they are cheaper. Most things can be frozen to restore the sell by date.
2. Grow your own vegetables and fruit alot cheaper than buying.
3. Use price comparisions sites to check you are not paying to much for your gas – electric or mortgage.
4. Check with your enegry supplier to see if you have an economy setting, do you washing etc in the evening as it is cheaper.
5. Take a shower instead of a bath, its cheaper.
6. Do you really need the heating on ? Can you just put on another layer of clothing.
7. Hang clothes to dry on a rainy day indoors over the bath or use a clothes airer, its cheaper than the tumble dryer or radiators.
8. Use natural products for cleaning its cheaper and better for your health !! I.e Vinegar for cleaning windows.
Overall just think about ways to do things on the cheap, research and you will be saving money and getting out of debt.
Remember pennies make pounds and pounds make rich men !!!
April 17, 2008
