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Financial Fitness Financial Planning

6 Top Budgeting Tips To Get Ahead

With a cycle of endless expenses and bills cropping up left, right and centre, it can be hard to get yourself ahead financially. The holiday period makes this even harder with work slowing down, parties to attend and presents to buy, it can almost feel like you are throwing all your money away as soon as it comes in. So how do you get ahead?

Here are our 6 top budgeting tips to help you get on top of your finances and put you back in control. With the right budgeting tips, you can plan for events like the festive season and set yourself up with a buffer, so you can still save and not fall too far behind.

6 tips to effective budgeting

6 Top Budgeting Tips

After some top budgeting tips to help you get ahead with your finances. Tackle these, one by one and you will find the money will slowly start adding up in your savings account. There is nothing more important than having a buffer to fall back on when expected expenses crop up. Here’s how you can manage it.

1. Keep track of your spending: this doesn’t mean just the big purchases. It’s amazing how fast the little things add up and go unaccounted for. Think about how often you buy a coffee when you are out? Or duck to the shops for some more milk? These are just small expenses, but they can add up over time.

You want to track every single expense and write it all down in a spreadsheet. Doing this over the space of a month or two will give you a great indication of where your money is going and what expenses are adding up unexpectedly. From here, you can start cutting down on some of those non-essentials (sorry coffee!) and making some changes to your spending habits. Rather than taking the time to create and update a spreadsheet, there are many apps out there to do it for you. Thebalance.com have an article comparing the best 10 expense tracker apps.

2. Set yourself a weekly budget: you should have a budget set up for all your income and expenses. It should include insurances, school and daycare, Foxtel, groceries and more. Every little detail needs to be budgeted for. On top of this, you need to set yourself a weekly spending limit. This is a great way to allow yourself to indulge on a few luxuries, without going overboard. Clean Credit breaks down the top 3 best money-saving apps in this article here.

You can even save up your spending limit between weeks for bigger purchase items. The idea behind this is being aware of your spending, rather than just ‘allowing’ yourself to make lots of small purchases. Having to save for items will make you much more aware of their real value and have you questioning whether you really need them.

budgeting tips

3. Leave the cards at home: Another one of our top budgeting tips is to leave your credit cards at home. How easy is it these days to just tap and go! It’s so convenient, but it is also quite dangerous as well. All these little purchases can add up without you even realising. The best idea to control those impulses? Leave the card at home. Simply carry cash that’s within your budget, so you don’t even have the means to spend beyond it. It’s simple, easy and a great way to curb that spending.

4. Pick up a side gig: do you find yourself spending your nights out, socialising and spending far too much money? Why don’t you keep yourself busy with a side gig instead? Consider putting up a spare bedroom on Airbnb, taking up some freelance writing, or helping with babysitting. Instead of going out and spending money, you can put your spare time to use earning a little more. It will help build that savings account of yours and will leave you better off in the long run.

5. Plan your meals: just a little planning can go a long way in helping you stick to your budget. Think of how often you resort to takeaways because there is no food in the fridge? Or buy lunch out as there is nothing at home to bring with you. Planning your meals for the week will help prevent this and save you the dollars.

6. Get a better deal on your mobile and utility bills: look at your current phone plan. Have you paid off your phone, are you nearly at the end of your current contract? Do you need all the data that your have? Do really need to upgrade or can you stay with your current phone and use prepaid? Talk to your energy company about your current plan. Ask if there is a more budget friendly plan where you can save money. Shop around.

Think ahead to what you are doing each day and try and stick to one weekly shop. Grab everything you need and make an effort to cook and eat it all during the week. You will save plenty of money by managing your meals this way, and it’s much healthier too.

budget effectively

Budgeting Tips & Finding Help

With these top budgeting tips under your belt, you will be able to start saving and get ahead with your finances. If you are finding yourself pulled down by debt and need a little extra help getting out, then contact the professionals at Australian Lending Centre.

With services such as debt management and debt consolidation, we are here to help. We can take a look at your individual circumstances and find a solution to fit your needs that will see you out of debt and back in control of your finances again.

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Debt Consolidation Financial Fitness

Forget toilet paper, why should you consolidate your debt amidst the Coronavirus panic?

It’s the word on everyone’s lips, the fear at the back of everyone’s mind. What will happen to me if I get coronavirus? What will happen at my workplace if coronavirus infiltrates? How do we keep ourselves and our loved ones safe? These are all very legitimate concerns, but there is also something much bigger happening as a result of the recently confirmed pandemic. There’s very serious economic instability right now, which is why you should consolidate your debt.

What’s happening economically as coronavirus spreads?

Our economy is coming to chaos. Cities are being evacuated, schools are closing their doors, travel restrictions are being implemented and stock prices have been in free fall as the airborne virus spreads. Amidst all this panic, just how is coronavirus impacting financial markets and our very own financial stability? What’s going to happen to those currently owing debt? How can debt consolidation help in the age of coronavirus?

First things first, you can forget the toilet paper. We’ve got bigger problems on the plate to worry about. With stocks taking a dive, there’ll be less capital available for banks to loan people money. We can also speculate that as the global economy becomes unstable, debt will begin to mount. How come? Well, for those who aren’t currently in fixed-rate agreements, debt is subject to rise as lenders begin changing their terms. With banks fiddling with policies, borrowers will be at the mercy of their changes and those paying off debt are left dealing with a very volatile financial landscape.

The baseline is that we just don’t know what the future holds regarding coronavirus. And we certainly don’t know what it means for our future financially. In a time like this, uncertainty is unsettling, especially with coronavirus posing risks to employment around the world.

How can consolidating your debt help you in such a precarious time?

By general definition, debt consolidation can help reduce the stress of multiple debts by bringing them all together into one single, manageable debt. If you owe debt, the lender could change their policies at any moment, and if you owe many, that’s a no brainer. It’s one alarmingly volatile position (and can be a very confusing one at that).

Australian Lending Centre is here to offer a sense of stability in this shaky time. Consolidate all your debts into one fixed-rate payment, save money with a lower interest rate and overall, feel secure with peace of mind for you and your family.

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Debt Consolidation Debt Management Financial Fitness

Learn How To Manage Finances After Divorce

You might have been led to believe that marriage ends in ‘happily ever after’ (thanks to Disney), but the reality is that approx. 1 in 3 marriages ends in divorce. Emotional consequences aside- the financial impact of divorce can last for decades and carry on into older age, according to new research. It’s important to understand how to manage finances after divorce.

The numbers and women

According to a CII research report:

  • 34% of women in their 30s say their money wouldn’t last a month if they lost their main source of income.
  • The average man accumulates 5x the pension pot of the average woman.
  • The average divorced woman has 1/3 the pension pot of the average divorced man (£9,000 vs £30,000).
  • Most women in the bottom 40% of households by household income have no pension wealth at all.
  • Women’s household income fell by 41% following a divorce or separation after age 50, while men’s household income dropped by only 23% (GAO.GOV downloadable report).

Why such a strain on women?

46% of divorced women said they experienced financial surprises, including:

  • Being unaware of the total size of their marital debt (the primary mortgage, home equity line of credit, auto financing, credit card debt and loans).
  • Not anticipating the financial need to return to work.
  • Assuming they could keep the marital home.
  • Expecting child support would be higher or last for longer.
  • The giant cost of health care insurance.
  • Underestimating the cost of getting a divorce.
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Sadly, 47% of divorces involve children under 18 years of age (gov.au)

“Child care, medical expenses, education and extracurricular activities are typically called into question post-divorce.”

heri Atwood- Founder & CEO of SupportPay

Since almost 82% of parents with custody are women, these expenses that fall outside that base monthly payment usually land on the mothers.

Ways to manage finances after divorce

Enlist a good divorce solicitor

They can advise you and help in devising a plan in moving forwards.

Close all joint accounts

Open new accounts in your name and take your name off joint bills. Ensure that your credit record is clean.

Be aware of any joint debt

After divorce, you not only split assets 50/50 but also split any joint debt. If you suddenly find yourself juggling millions of different debts, then it might be worthwhile looking into Debt Consolidation.

Clean up your retirement accounts

Speak to a professional about dividing your superannuation accounts.

Don’t get emotionally attached to your marital home

Can you realistically afford to keep it on your own or would it be better to sell up and find something more economically suitable?

Budget smart

Be aware of your income and expenditure. Work out your current budget and plan for a financially healthy future.

Your financial support options

Whether it’s personal or business financial support you require- help is always available.

Get the support you need – financially or advisory from us.

Australian Lending Centre offers:

Speak to our team to see which option is best suited to help you.

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Debt Management Financial Fitness Tax Debt Loans & Relief

Debt Reduction: How to Stop Spending Impulsively

Debt can be annoying and stressful. Trying to enjoy life whilst juggling a whole lot of debt, can however become overwhelming. Now throw in nasty shopping addiction and your plans to get out of debt can seem practically impossible. So how do you avoid overspending whilst reducing your debt? Is it even possible?

Introducing debt reduction tips

Debt reduction is all about making mental and lifestyle changes which can affect your spending habits. For some people, this may be kicking an addiction, and for others, it may simply involve setting a budget. Regardless of your personal situation, our debt reduction tips are here to help you stay on top of your messy finances.

Don’t buy things unless you need them

Have you walked past that designer clothes store to notice a fashionable pair of sneakers? You tell yourself ‘no, no I don’t need them’. Ten minutes later you find yourself sitting down trying them on. Five minutes later you’re in $500 debt to overpay.  People who are in debt tend to purchase everything they want, regardless of whether they can actually afford it or not. This craze is very common and it is otherwise known as impulse buying.

The trick to battling impulse buying is to stop and wait. Give yourself some time to decide whether you really need it or not. The best trick to dealing with impulse buying is to question your purchase decision. Ask yourself the following questions.

  • Do I really need this?
  • Do I already have a similar item?
  • What will I use it for?
  • How much is this going to set me back?
  • Can I actually afford it?
  • What can I do with the money if I don’t buy it?

You will quickly find that when you give yourself time to stop and reflect upon your purchase decision, you will realise that it is not a need. If however, it is a matter of necessity, consider if it is the best option available.

Think of loss as an opportunity

Before you make that big-ticket purchase, consider one thing. The loss of a certain thing you didn’t need but you really wanted is an opportunity. What we mean by this is that whilst you lose out on not buying that designer pair of shoes, you have gained the opportunity to pay off your debts sooner. At the same time, you have gained the opportunity to reduce your debt. Remember, debt reduction should be your ultimate goal. The sooner you remove unwanted debt, the quicker you can get on with your life.

When you’ve settled that, you’ll think twice before paying for trinkets. It will automatically become your instinct. As a consequence, you’ll be less impulsive.

Make a monthly budget

“This month, I’ll spend x dollars on food and expenses.” If we could suggest one main debt reduction strategy, it would be budgeting. A budget is the best way to reduce your debt and develop positive long term money habits. Luckily, there are many online calculators that can help you to evaluate your debt and set an appropriate budget.

Now, by all means, we don’t want you to starve yourself, but the goal of budgeting is to plan out your finances. Assess how much money is coming in and how much is going out. From here you can determine your saving capabilities(if any) and how long it will take to pay off your debt. To do so, you must refrain from overspending. Budgeting requires strict mental discipline.

If you don’t have many places to cut from, then consider additional income. This may include side jobs such as becoming a ridesharing driver or using your skills on upwork. This will help you reduce your debt quicker.

Don’t shop without a list

When you go shopping without a clear knowledge of what you need, you’ll always end up buying the stuff you didn’t even think about in the first place. Write everything down. Assess what you need before you go to the shop down the street. It will make it easier to stick to the basics. All the debt reduction tips you’ll ever find will include this one.

Avoid online shopping

More often than not, the prices you see on the Internet for the same products that you can find in any store are considerably lower. Because of this, you start adding stuff to your cart thinking “Boy, I’m so lucky!” Unfortunately, you’re not. You’re going to spend even more than you would’ve spent at the store. Everything’s so cheap that you just got to have all of it. If your debt is therefore out of control and is a result of online shopping, stay right away.

Don’t be pressured by the end of year promotions, or the large red banner that says “Sale, 50% off everything”. This will send you down a path of uncontrollable debt. The last thing that you want is a bad credit score which can arise from failing to meet your debt obligations.

Conclusion:

Debt is painful. It’s hard to splurge on big-ticket items. Unfortunately, you are in a situation that requires lifestyle changes. Debt reduction will only benefit you in the long run. For this reason, you must avoid overspending at all costs. You’ll push the deadline further away and, at the same time, you’ll amass more penalties. Implement these simple debt management tips, and your debt will dissolve faster. If you continue buying impulsively, you’ll only hurt yourself and your family.

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Debt Management Credit Card Consolidation Financial Fitness

Strategies For Getting Your Credit Cards Under Control

Plastic money, where all you have to do is swipe a card and that product or service is yours. It’s great, right? Until you receive your credit card bill and realise you don’t have the funds to pay it off. Before you know it, the interest starts to soar and your credit score takes a whack. Don’t worry, you’re one of many to have fallen into this trap! Fortunately, there are ways of getting your credit cards under control before it’s too late.

Here are six ways for getting your credit cards under control

1. Pay MORE minimum monthly repayment

Or more, if you can afford it. You have three choices when it comes to making your repayments:

  • You can pay the full amount and take advantage of the interest-free period on your card.
  • Pay more than the minimum repayment to limit the amount of interest charged.
  • You can pay just the minimum repayment. This is the least recommended option, as the interest will build up. This may lead you into more debt down the track, which is hard to get out of.

2. Lower those rates

All it takes is asking! The fastest and easiest way to ensure you get back control of your credit card is to shave off a percentage or two on your interest rates. Even a small amount can save you hundreds when it comes to paying off your debt. Call up your bank and simply ask! Your credit score is likely to play a role in whether or not this will happen, but either way, it never hurts to give it a shot.

3. Pay down your HIGHEST rate card first

This one makes sense. If you have a few different credit cards that you are owing money on and you can’t afford to pay them all off, start with the one with the highest rate. This is also known as the ‘Avalanche Strategy’. Tackle the card with the highest interest rate first, while maintaining at least the minimum repayments on the others. Once you get the first one paid off, you can work your way down to paying off the rest.

This method ensures you pay as little interest as possible while making these payments and getting your way out of debt. As you work down through your debts, the amount you can put towards repayments on the next debt increases with each cleared debt – creating an avalanche effect.

4. Budget

If you don’t have one already, now is the time to put one into place. Factor your credit card repayments into your budget, so you stay on top of them. Look at how much you are spending each month on each one and compare this to how much you earn. If you are spending more than you earn, then it is time to cut back.

If you are already in credit card debt, then add this to your budget. Plan to pay a little bit off each week, to make sure you are working to an end goal. If you are in debt, then set aside your credit card for the essentials until you have paid it off.

To get a good look at your spending patterns, check out your credit card statements. From here you can assess where to make cut backs. Utilise a free online budget planner to quickly understand where your money is going.

5. Pay off Your Smallest Balances

Depending on how many credit cards you have, you could find yourself a little overwhelmed. Start small and work your way up. This one is known as the ‘Snowball Strategy’. The idea is that you feel so much better getting one card paid off fully. This will give you the momentum to tackle the next one and then another after that.

This positive cycle continues and ‘snowballs’ until all your cards are paid off and you are back in control again. Unlike the Avalanche strategy, you could end up paying more in the long run, as you are ignoring which cards have higher interest rates and paying them off based on the amount instead.

6. Have a goal

Whether your goal is to be completely debt-free, or simply to be on top of your repayments, it is important you have this goal in place when it comes to taking back control of your credit cards. To keep yourself accountable, it can help to talk to a close friend or family member, so you stay on track and don’t find yourself too overwhelmed in the process.

Taking back control of your credit cards will have you in a healthier position for some long term goals, such as travel or taking out a mortgage. Remember, start small and build your way up again and you will soon find yourself debt free and able to stay that way. Think next time you pull out that handy little piece of plastic to pay for something.

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Debt Consolidation Debt Management Financial Fitness Financial Planning

How To Save Money When Online Shopping

Online shopping has become a convenient and easy way to buy what you want when you want..  Crazy bargains, heavy discounts, fast delivery, and convenience are only some of the reasons why people are shopping online. With all these ‘crazy’ bargains we are seeing an influx of people overspending. Consumers are buying anything and everything. Now – this is not necessarily bad; but if you find yourself turning into an online shopaholic, it may be time to start thinking about how you can save money when online shopping.

Here are some of the ways to save money when online shopping

Be quick or have patience

Have you hopped on to an online retailer to see the entire page full of Sales? You quickly find a nice pair of shoes. They are reduced by 15%, oh and they only have one more in stock. Luckily it’s your size. You cannot miss out? Can you? You add the shoes to your cart and away we go.

Finding a bargain can well and truly save you money, but sometimes, you’re really just falling for digital psychology – yes this is a thing!  Rather than buying with your emotion, stop, take your time and assess whether you need the item or not. If you really do need them and they are cheaper than competitors then go ahead. If however, you wait, you may see a further discount online. This discount may come later on through an email notification so don’t forget to register for their email notifications and then wait.

Search for coupons and use them prudently

The majority of people now are aware of registering to receive the seller’s email promotions. In saying so there are still a variety of online coupon providers such as Groupon that can help you save that extra cash. Search online for online coupons and use them at your disposal. Sometimes you may even be able to combine multiple discount codes. Win-Win.

Find the right days

Most companies have conducted their research into when shoppers are most likely to purchase. It is on those days that they will offer brains to draw customers in. For example, research suggests that the best time to buy clothing online is a Monday. Shoppers may save anywhere up to 50% on pants. Using that to your own advantage can be helpful. Buying your stuff on the right day will help you save. All it takes is a little research and patience.

Showcase your loyalty

Register for loyalty reward programs if you are a frequent shopper of a particular site. Your reward points on discounts and gifts will accumulate as you purchase your products. However, avoid going overboard when purchasing products to accumulate the points. The last thing that you want to do is buy something only for the sake of accumulating points. Save them and use them when you really need to.

Utilise social media

For the quickest and easiest way to catch a bargain, make sure you follow your preferred online shopping sites on social media platforms. Press the like icon on their Facebook page, start following influencers on Instagram and get on board their Twitter page. This is the easiest and greatest way to find out when products are on special. There are always giveaways and discount codes that get are available online.

Avoid overpaying on shipping

Thousands of companies allow you to jump the shipping fee if you buy goods worth a certain amount. Rather than making single purchases, consider creating a list of stuff that you need and order then all at once. When shopping online, look for websites that offer free shipping and whatever you do stay away from express shipping – unless you really need to.

Try to outwit dynamic pricing

A smart way to save money when online shopping is to take advantage of dynamic pricing. Dynamic prices can be defined as a fluctuating price that is shown to consumers depending on various factors.  These factors can include location, spending habits, current demand, and browsing history.

For example, if you’re shopping for an airline ticket, you may notice the price will change. You may have paid $500 for your first flight but when you check back on a different browser or your friend’s phone, the price has increased or decreased. There are two ways in which you can outwit the dynamic pricing.

  • Clear browsing history and cookies. This will make you appear like a new client on the site
  • Sign out all your account and use incognito mode to browse anonymously

Final word on online shopping

Use these tips to save some cash on all online purchases you make.  That can be via discounts, cash-back sites, smart tactics, shopping vouchers, and coupons. Above all avoid using buy now pay later services such as Afterpay. These services can lead you to a pit of debt.

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Debt Management Financial Fitness

Debt Relief Tips For Smart Borrowers

Are your finances stuck in a rut? Are you wondering how are you ever going to get yourself out of this frustrating financial state? Fortunately, there are debt relief strategies that can help you get your finances in order and get you back on the road to financial freedom.

Debt relief tips to stay ahead

Take a day off to clear your head

Sometimes it can just get all too much. We are only human. A clouded mind won’t help you make smart financial decisions. Take some time off to relax. Find a park, a waterfall, cafe or your happy place. Spend some time clearing your mind. Log out of Facebook, put your phone on aeroplane mode and whatever you do; don’t look at your bank account!

Reflection can help to clear your mind and allow you to rethink about your finances in a more positive light. Take a notepad and write down your thoughts about debt. Evaluate your financial decisions and create a list of short term and long term goals. Whilst it may seem difficult to take time off, especially in a tough financial state; it may actually do you the world of good.  It can also help you gain a realistic perspective of your current financial concerns and fears.

Write down your assets, liabilities, and other pressing concerns surrounding your finances

A great debt relief tip is to document your financial state. If you are married or living with a partner, writing down all your financial issues can help you talk about sensitive financial issues without getting into a lengthy argument. Prepare the bills; write them down one by one-including their interests, due dates, late charges and other matters that need attention. Then, create a budget together-or propose one if the other spouse or partner is not so into budgeting. Exchange opinions on the matter and work on a budget that would fit both of your lifestyle and financial goals. Budgeting tools are available online. They help you keep track of your finances and better manage your cash flow.

Evaluate your financial plans

How do you want to live? It’s a no brainer that no one wants to live from paycheck to paycheck or end up in a multitude pile of debt. That’s why debt relief solutions are so tempting for borrowers. But before you seek debt relief, do some brainstorming to get a clearer perspective of what you want to achieve in life. Make specific plans for reaching your goals.

Look for alternative ways of paying off your debt

In theory, the answer to debt relief is pretty straightforward. The more money you put towards your debt, the quicker you will pay it off. Whilst budgeting can help you pay off your debt more effectively; you need to have the cash flow to pay it off. In today’s tech-driven society, it has never been so easy to make an additional income.

With services such as Uber Eats, Airtasker, Gumtree, and eBay; anyone can make extra cash. You can deliver food via Uber eats, build a flatpack from IKEA for someone or sell your PlayStation on gumtree for cash. Now, this is by no means the “Easy” way out. You need to be determined and motivated to work hard. The extra cash, however, can be extremely useful in quickly relieving your debt.

Stop creating more debt

Whilst this debt relief strategy won’t necessarily get you out of debt, it will ensure that you are not piling on more debt. Adding on more debt to your existing debt will only make you worse off. So if you are tempted to add another credit card to help pay off your bills; don’t! Rather than securing more credit, freeze your card or cut it up.

Compare debt relief solutions and choose one that best suits your financial situation

Debt relief solutions may assist in giving you that extra boost to get things rolling. Alternative lending agencies such as the Australian Lending Centre offers a variety of debt relief options. These debt relief options include;

Debt consolidation

You can combine all your existing loans into one big loan. This way, you can lower the interest rates; get affordable terms and easy-to-manage monthly repayment plan.

Mortgage Refinancing

Repay your current home loan using new or second mortgage to enjoy lower interest rates, a favorable term, or a lower monthly payment.

Debt Agreement

Try negotiating with your creditors to reduce your debts. Who knows? Maybe they can forgive some of the penalties to make your payment manageable. ALC also negotiates a favourable agreement with your creditors or loan providers to reduce your debt or make your payment requirement more affordable so you can quickly repay your debts.

Credit card debt relief

Consolidate credit card debts to save on penalties and interest rates. ALC’s credit card relief program allows you to pay off high-interest credit card debts and transfer the loan amount to another low-interest loan or credit card.

Debt relief is achievable. You need to be determined to get your finances in check. Fortunately for you, there are a plethora of services that are available at your disposal. With smart budgeting, determination and a clear mind you can quickly regain control of your finances.

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News Debt Consolidation Debt Management Financial Fitness Financial Planning

Fast Loans and the Fastest Ways to Repay Them

When you need cold cash now, fast loans can be your best bet. Fast loans are quick and easy to obtain. Lenders can process loan applications within 24 hours meaning you can have your funds in your account overnight.

Whilst fast loans may be your saving grace, how can you repay your loan back quickly?

Here are some tips for paying back your loan faster

1. Pay more

If you can afford it, put in larger payments each month to pay off the principal more quickly. For example, $2500 fast loan with 6.8 % interest with a 10-year payback period would cost $28.8 a month. Making $70 payment on a monthly basis instead of $28.8 enables you to repay the fast loan in just over 36 months. By paying the principal more quickly, you will also pay for less on interest.

2. Make additional payments

The less you owe, the less interest that you will be charged. If you are able to budget effectively; you may be able to make additional payments to your fast loan.

3. Create a plan to pare your fast loans

Know exactly when your fast loans will end. Next, create a goal to pay it off within a specific period of time, commit to it and pay it according to the repayment plan. Make it a routine to pay it off monthly. If you’re facing difficulty in coming up with the monthly payments, create a budget and cut back on your expenses. This way, you can lift your debt obligations off your shoulder faster than ever.

4. Automate savings

Automatically transferring money into alternative accounts is a great way of saving that extra cash. Rather than spending money on trivial things such as movie tickets, or that unhealthy meal; automatic payments can help you set aside that extra cash to pay off your debt.  Make sure that you will only use that account for paying back your fast loans and other types of debt. This will require sacrifice in certain areas, but it will ensure that you are one step closer towards financial freedom.

With the growing wave of cryptocurrencies such as Bitcoin and Litecoin; some experts have suggested investing your extra savings into crypto. This is an extremely volatile and unpredictable form of investment that we do not recommend. Many experts compare cryptocurrency as a form of gambling. Whilst, it may seem as though there are immediate increases in profits; you may lose all your hard-earned savings in a second.

Hide your credit card in a safe place

Don’t be a victim of credit card theft. With easy access to your credit cards via pay pass; strangers who have access to a lost credit card can easily tap on purchases less than $100. Keep your credit card securely in your wallet. If you lend your card to friends or family, make sure you keep track of any transactions online.

Keep your phone in your pocket. 

The same rule applies to your mobile phone. With the rise of Apple Pay, you can purchase your transactions through your mobile phone. Make sure that you keep your phone locked with a passcode so that strangers cannot make any payments without facial recognition or a passcode.

5. Close some credit cards

Having them on your wallet may tempt you to spend more. Leave only the low-interest credit cards for your urgent needs.

6. Consolidate your debts

One of the best ways of ensuring that you continue to pay off your loan quickly is to consolidate your debts into one neat and tidy bundle. This will also protect you against the rising interest rates across different loans. This will benefit you in the long run; whilst making it easier to manage your debts.

7. Be proactive by increasing your income

Earning cash while dealing with your debts is a good way to stay proactive about overcoming debts. You don’t only generate wealth to pay for your loans; you also build your nest egg. If you can put away $100 every month out of your income, that would be $1,200 annual savings.

At the Australian Lending Centre, we can help you avail of our easy-to-pay fast loans and our debt management plans. We can help you strengthen your ability to repay your loans and live a financially secure life. It takes discipline and planning, but you can surely do it.

Contact Australian Lending Centre to get back on track. 

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Business Loans Financial Fitness Financial Planning Low Doc Loans Self Employed Short Term Business Loans Tax Debt Loans & Relief

Questions for People Applying For Business Loans

Are you applying for a loan so you can start your own business? Here are five questions about business loans to help you make the right decision.

Am I a manager or an entrepreneur?

Entrepreneurs and business managers face almost the same stress when it comes to operating a business. But the two are on opposite sides of the spectrum. They’re different. What is the difference? A manager operates an already-established business. They may not be the people who started it and founded it, but they are the ones who own it at the moment. A manager also has to make sure that the challenges the business faces are handled properly. He also has to hire and retain hard-working employees, know the niche their business in focusing on, and be able to improve whatever needs improvement.

Entrepreneurs Are The Innovators

An entrepreneur, on the other hand, is the one who creates the business. He looks for opportunities that are what the market needs, and converts them into a business plan. A real entrepreneur has the eye to identify opportunities needed in the market and also has the ability to turn those opportunities into businesses.

Managers Are Effective With Day To Day Operations

If you think you can be an effective manager but you don’t have the enthusiasm to start everything from scrap, you might consider franchising. It doesn’t involve the stress of putting up a new business altogether and you have tried and tested marketing methods and business plan to help you get started. But, if you think you have the heart of an entrepreneur, go for it! Get the business loan you need to kick start your business and you will surely beat the odds and succeed in your business.

What is my business model?

This is one of the questions about business loans with high importance. Are you putting up a home-based business, an online business or a traditional brick and mortar business that requires a good location?

Create a Business Budget

Create a business budget before you fill-up the application loan. It is important to include the annual budget for the upcoming year, based on the current year’s expenses. When making a budget, don’t forget to review you’re the actual expenses versus the budgeted amounts for the past two years of operation to get a good idea of your average income and expenses.

No Guarantees on Sales Forecasts

While it is important to make a sales forecast, bear in mind that you cannot guarantee the exact sales volume. So, when coming up with a budget consider your past expenses and profits as well as your realistic sales forecast.

Business Expenses

Create a ledger are of your business expenses based on your business model. For example, list fixed expenses such as:

  • administrative expenses
  • marketing expenses
  • payroll
  • rent or mortgage
  • utilities

These amounts are fairly consistent each month regardless of your sales volume. Don’t forget to include the list of variable expenses —or those that fluctuate each month. These include raw materials, inventory and manpower.

Is Self-Employment good for me?

Self-employment is starting your own business- with your own finances, own plan, own budgeting, own everything. Now it also has its own pros and cons like everything else. Being able to own a business may sound quite great at first. But sometimes, it gets tiring when you’re the only one working. Independence is a good thing. You wouldn’t have to rely on anyone else, which minimises the possibility of small quarrels between co-owners.

Are You After Fame or Freedom?

If ever your business becomes known, you’ll be known as the person who single-handedly founded your company. This is actually a great advantage. Imagine, being the only one who founded a huge business? That’s a big deal. To other people, owning a business means being able to control whatever happens in their lives. That’s what we all want right? Freedom to do what we want, say what we want to say.

Being Independent

The search for independence has struck many – this is the reason why the majority now wants to start their own business, for them to have more control over their lives. However, drawbacks exist- such as payoffs.

Loans Give Your Freedom To Chase Goals

When you have access to business loans, regardless of your credit score, you will have the freedom to set your goals.  It is also a good motivator to track spending—knowing that when you do, you’ll be an inch closer to the accomplishment of your goals. Finally, it is a good source of emergency funds. You can cover up to 3 months of working expenses in case you hit an unexpected situation.

Finances are the biggest sources of conflict

Financial issues are one of the commons sources of business conflicts-either with business partners, with suppliers or clients. That’s why it is important to have easy access to business loans to ensure that your business will go on as usual despite financial crises. But, you have to be careful with whom you borrow money from—a good lender would want its clients to move ahead in life. They will not charge hefty interests and unreasonable fees for a small amount, Look for a reputable lender that allows you to grow your business while you can comfortably repay your loan.

It’s common to have questions about business loans. After all, it’s a big decision which does come with risk. However, business loans can also bring great reward. Australian Lending Centre can provide the financial assistance that you need to push your business forwards.

Categories
Bad Credit Loans Debt Management Financial Fitness No Credit Check Loans

How Do I Fix My Credit Score?

A bad credit report can cost you thousands of dollars in interests, penalties and fees and many people have asked us “how do I fix my credit score?”. It may also block you from getting a promotion or possibly from getting a promotion or the best deals for a dream car. Here are tips to answer your question.

Request for free copies of your credit file 

…from the major credit reporting bureaus in the country. It is important to check your file if you want to start repairing your credit score.

Examine your files to know exactly the areas that you need to work on. For example, if you have a terrible credit history, it will be helpful if you can check which accounts you have missed paying, and when you started doing so. If you have done poorly because you always maxed out your credit cards, it may be time to refer to those accounts so you will know which card to stop using for the moment. At the same time, it would also help you check whether you have defaults on old accounts so you can settle them as soon as you can.

Dispute credit errors

It is your right as a consumer to get correct credit report. The law allows you to dispute errors by sending a dispute letter to the credit bureau that listed inaccurate entries.

Remember that errors are costly. They can seriously hurt your credit score and bring it down by over a hundred points. What’s worst, you may not qualify for low interest loans simply because of data entry errors or failure on the part of the creditor to update your credit information. It is also a good opportunity for you to correct wrong information that indicates identity theft or credit card fraud.

Minimise your credit card balances

Don’t go beyond 30 percent of your credit limit. Pay all your balances for the month, and when you use a card, make sure that you keep those card balances low to boost your score. If you are having a hard time in paying multiple credit card balances, you can get a personal loan to consolidate them—not only to boost your score but to save money on interests. It is also easier to remember repayment schedule because you only have one lender to think of, so your chances of missing payment is very low.

Lower your utilisation rate

It is not enough that you pay balances in full each month. If you have a higher utilization ratio than 30%, they will still add weight to your monthly balances. One of the best ways to deal with it is to make sure that you make multiple payments throughout the month, to lower your balance. But, not all credit card providers allow this. So, it is important to stick to your credit limit at all times.

Will paying nuisance credit card balances fix my credit score?

Do you have small balances on a number of credit cards and you haven’t paid them yet?

If you want to boost your score, eliminate all the balances on your cards. Instead of charging $50 on credit card A and another  $50 on credit card B, why don’t you just charge them all in one card with a low interest rate, and pay it all off each month?

Don’t get old accounts off your credit report

True, you want to get rid of negative items because they are bad for your report. But, your score will improve when the oldest paid account remains there. The old debt on your credit report like a mortgage or car loan is not bad, so don’t be in a hurry to get it removed from your file the minute you get your debt paid off.

Most of the negative items are really bad for your credit score. But, they just disappear from your credit file after seven years so don’t argue to get your old paid accounts eliminated from your file. Even if it showed that you missed a lot of payments—just keep them there. At least, you were able to show that you managed to repay after all.

Then of course, there are good debts. A good debt is the account that you’ve handled well and paid on time. When it appears on your file—your score will be better simply because you have a long history of good debt. Lenders will also look at your application favorably knowing that you have been a responsible borrower for a long time.

How do I fix my credit score when I have good and bad debts?

In a nutshell, leave your old debts alone, pay all your balances. Don’t close accounts, especially those where you had solid repayment record—because it will eventually boost your score and increase your chances of getting favorable loans. For a shortcut to fix credit history, contact Clean Credit.

Categories
No Credit Check Loans Business Consolidation Loans Business Loans Financial Fitness Financial Planning

Developing Budgeting Techniques for your No Credit Check Loans

The aim of this article is to give you all the tools and techniques to improve and develop your budgeting techniques so you can fully enjoy the benefits of no credit check loans.

Do you have any concrete plan for your loan the moment you acquire it?

A financial plan will allow you to do the following:

  • Build your brand without fear of not being able to support the marketing campaigns
  • Boost your sales and income
  • Reach your target market
  • Get referrals from satisfied customers

Here is a step by step guide on how to create a budget for your no credit check loans:

Understand the real meaning of budget

A budget is a piece of paper, document or app that records the following:

  • actual income
  • projected income
  • expenditures over a period of time

When budgeting for no credit check loans, you should consider the following before making a decision about spending.

What is important to me?

Are you willing to trade off a comfortable retirement for a holiday in the Caribbean? Do you want to eat at nice restaurants and charge them on credit cards, copping interest in the process? Would you prefer to pay for your children’s education instead of purchasing an extravagant model of car?

Each of us has our own priorities. Someone else’s priorities may seem to be trivial to you. A simple event can be other person’s bucket list experience. Your choices depend upon what is significant for you. Sadly, a lot of people get into debt for things that do not really matter to them in the grand scheme of things.

How do I want to live?

Nobody wants to live below the poverty line and not everyone is comfortable with debt. But, when a crisis occurs, such as family breakdown, health issues or unexpected changes, you may be forced to go into debt — which may be too great for you to handle. Thinking about creating a debt management strategy, could help you handle debts and free up a little income to meet your daily expenditure.

How can I accomplish my financial goals?

Visualise your future

Imagine what it would be like to build your brand with the income that you have and the revenue that you can get if you manage your business well. The challenge is to bridge the gap between your present situation and your vision.

You can ask yourself, ‘If I want to be that person, what can I do right now to get there?” The answer may be uncomfortable for you at first, but when you see that you are getting through with it with flying colours, you will be encouraged to continue until you succeed.

Set realistic and achievable financial goals

What are your long-term and short-term goals?

Do you wish to save $50,000 for a down payment to your dream house? Do you want to be totally free from debt in 5 years’ time? Or, do you want to save $500,000 to put up a new business outlet? Your goals should be specific. Put a deadline for each of them and review or adjust those goals until you accomplish them. For example, if you want to have a comfortable retirement, define ‘comfortable’. When do you want to retire? How much money do you want to receive each month? Where do you want to live?

Set short-term goals or those that you can accomplish in less than a year. Perhaps you want to pay off your $100 credit card debt in 6 months or save $2000 for a nice pair of shoes for Christmas.

Make a plan on how to accomplish your goals

Here are three factors to consider when creating a strategy:

  • Income: How much does your business make? Look into your net profit to have an idea of how much you can afford to save on a daily basis.
  • Consider your fixed and variable expenses, and your cash flow projections. The problem arises when there is nothing left for you to save.
  • Does your business maintain an emergency fund to cover unexpected expenses? If not, you may have to resort to financing to access quick cash and avoid possible business disruptions. If you have goals, it is important to start filling up your savings account as soon as you can.

Allocate the proceeds of your no credit check loans to meet your financial goals

If you have long-term goals, you can use the proceeds of your loan to boost your capital and eventually increase sales and income. It can also help you meet short-term goals, such as paying suppliers, buying new equipment and other urgent expenses. Budgeting for no credit check loans is crucial.

Sometimes, you have to make tough decisions to ensure that your projected income would exceed your projected expenses. You can either get a loan to raise your capital and eventually increase your income, or you can use it to consolidate your other debts and eventually save money in interests and fees.

Categories
Bad Credit Loans Financial Fitness Financial Planning

Importance of Budgeting the Proceeds of Bad Credit Loans

Most business owners understand the importance of creating and sticking to a business budget; especially when they are using borrowed money—like bad credit loans. It is the best way to make sure that the business expenses do not exceed the working capital and the income during the month, forcing you to resort to debts to meet operational needs.

Budgeting the proceeds of bad credit loans reduces the uncertainty that often accompanies business operations, especially in terms of balancing income and expenses. It also provides a stable fiscal framework when making financial decisions.

Here are the two important benefits of creating a budget for your bad credit business loan proceeds:

Predict cash shortfalls

One of the reasons why you need to create a budget is to have an idea of the possible income and expenses. While you can estimate the income through the sales volume, it is still dependent on the expenses and how you manage it to meet the orders. When you understand the possible cash shortfalls, you can make plans on how to address them, using your financial resources.

For example, you can plan in advance on how to use the financing you obtained, or to recognize when top secure additional financing. You can also check if there are lines of credits that you can tap into.

Another good strategy is to project your income every month. This way, you can shorten the collection period of payables. Instead of 30-day payment, you can shorten it to 15-days so that you will have enough cash to cover the foreseen expenses for that period. It is very important to realize that there is a huge difference between sales and income. While you may have increased your sales for January, your income may still be the same if you are not able to collect payments from your customers.

Plan large expenditures

Business expenses are categorized into two—fixed and variable.  You can plan on how to meet overhead costs such as office space rental, administrative expenses and payroll, which are consistent and fixed expenses. But, you may not be able to do so, when it comes to variable expenses that usually depend on sales volume.

The higher is the sales– the more expensive the inventory. So, instead of being surprised with large expenses, why not create a budget for your bad credit loan so you can meet large variable expenses when the need arises? You can also make a budget that includes the purchase of one-time capital expenditures such as equipment and buildings.

Reduce costs by budgeting the proceeds of bad credit loans

Calculate the debt-to-income ratio of your business by dividing the total monthly payment for your business debts into after-tax business income. Let’s say, you are self-employed. You are paying $350 each month for your business line of credit. On average, your business earns a monthly net income of $2,500. That means, your debt-to-income ratio is .14, still lower within the 15% debt to income ratio limit.

By planning your financing in advance, you can choose a loan product that best matches the debt repayment style of your business. Let’s say, you usually receive payments for accounts receivables on the 29th of each month. That means, you also have to get a loan that falls due on the same day or the day after. If you generally make payments on the 15th, there is a big chance for you to miss payments. This means you will have to pay additional interests or penalties.

When you have an idea of how much you can spend on a certain period, it will be easier for you to design your own payment schedule. For example, repay your bad credit loans within 2 years, on a monthly schedule. By knowing how much you can afford to pay each month, and by getting the dates when you are most likely to have enough money to repay the loan, you will be able to repay more than the minimum required each month.

Financing Plan

A sound financing plan makes it easier to avoid debt traps or those that greatly increase the cost of borrowing. There is no need to worry about late fees. You don’t have to pay late, nor the over-the-limit fees because you will not exceed the credit limit.  You can also avoid making cash advances that quickly charges interest. On top of it all, if you know how to maximize your loan proceeds, you can look for ways to negotiate better repayment terms. This will allow you to possibly get a discount from lenders. Who knows? You may be able to request a reduction in interest rates and annual fees.

When managing your business finances, it is important to remember the budgeting principles that define your company’s basic financial structure. How your bad credit loans will be managed determines whether your business will be able to overcome the uncertainties that often accompany expense and income forecasting, which are essential in making effective and successful financial decisions.

Tools

To receive more help when it comes to budgeting the proceeds of bad credit loans, check out ALC. We offer a range of budgeting and loan repayment tools that will allow you to easily manage and stay ahead of your loans.

Categories
Debt Consolidation Financial Fitness

When your credit file is filled with unpaid defaults

In this article, we discuss ways to repair your credit rating through removing unpaid defaults. Are you experiencing financial hardship? Is this leading to unpaid defaults? You are not alone.

Identify the reasons why you have unpaid defaults

Understand that life happens and sometimes, you have to deal with some financial setbacks. Loss of employment, illness and relationship breakdowns may make repayments difficult. On other instances, it could be as simple as poor bookkeeping practices, not keeping your receipts, moving to another address or data entry issue son the part of your credit provider. But, whatever the reasons are, don’t let it deter you from pushing for a stellar credit rating.

Remember that creditors report that you’re on default when you are 60 days late with your monthly payment. It will serve as a warning to potential creditors that you have defaulted on your obligations and that you could do it all over again with another lender. Understand that paying off the unpaid defaults does not necessarily mean that you can erase those entries from your credit file. They will stay there for years. But, if you don’t pay them off, it could be worst.

Clean up your credit file

The best way to do this is to simply update your payments. If you have multiple credit card debts, and other consumer debts—you may think about debt consolidation. You can get a new loan to pay off all your debts. By doing this, you can reduce your monthly payments, possibly reduce the overall cost of the loan and simplify your payment. It could help you build up your credit again, not only by reducing your debts but by making it easier for you to pay on time.

By fixing your impaired credit file it would not only become easy to obtain finance but cleaning up your credit file can also give you a wider range of lending options. Remember that lenders approve clients based on their borrowing capacity. This does not only refer to their ability to repay the debts but on their credit score as well. You may also qualify for low-cost loans which may not be possible if you have a poor credit score unless you opt for specialized lenders who provide affordable loan products for bad credit borrowers.  Of course, the interest you pay on a loan would dramatically decrease as well.

Request a copy of your credit file

You can request a free copy of your credit file from the major credit bureaus in the country. Check them for errors, and if you see inconsistencies or inaccuracies. Sometimes unpaid defaults on your file are a consequence of an error made out of your control. You can file a dispute at the credit agency involved. Or, you may also file a complaint with your credit providers and ask them to update the report.  Sometimes, there are unjust listings or mistakes due to human error. So, make it a habit to ask for a copy of your credit file each year so you can easily contact the creditor concerned and talk over the issues with them. While it is possible to directly file a dispute with the reporting agency, they will not remove the negative entry without the approval of the creditor, or at least a valid proof that the entry is erroneous or inaccurate. There are also credit repair specialists that remove defaults on your credit file.

Consolidate your loans

You can apply for a second mortgage to consolidate all your high-interest loans into a single easy-to pay loan. By rolling all your debts into one—you could enjoy the benefit of saving money on unpaid interests and late fees. IT is also a lot easier to remember because you only have one due date to recall each month.

If you’re still unsure whether you could make timely payments because of your busy schedule—you can automate payments to ensure that you can pay on time. This will not only clear up your old debts and help you start with a clean slate—but debt consolidation can also help you rebuild your credit score fast your potential lenders would also see the improvement on your borrowing habits and you are most likely to qualify for low-interest and bigger loans in the near future.

Develop good financial habits to prevent unpaid defaults

After you understand the importance of paying off your debts, it may be time to look for the best financial product when you need them. Look for specialised lenders that offer accessible and affordable loans when you are finding some difficulty in managing personal finances because of cash flow shortage due to emergency situations. Afterwards, make it a habit to check on your budget and make some adjustments in order to save more and spend less son a day to day basis.

By sticking to your budget, you can stretch out your dollars and avoid debts. Budgeting is important not only for the low-income earners but to high-income earners as well. It is important to make the most of your incoming savings so you have some money to tap into when emergency situations like car repairs, urgent home renovation hospitalisation arise. By doing so, you can avoid being chased down by debt collectors for your unpaid defaults and you don’t have to rely so much on another loan to bail you out.

Categories
Mortgage Financial Fitness Financial Planning

Second Mortgage: Can You Handle the Effects of Inflation Before Retirement?

How do you protect your finances from inflation especially if you have a second mortgage?

While it is impossible to avoid inflation, you don’t have to suffer the huge impact of the decline in the purchasing power of your money, although you have a second mortgage. If you are careful with your spending decisions today, you may not even have to worry so much about your finances tomorrow. But, as your income increases, bear in mind that your expenses may soar as well. Even if it doesn’t, the prices for goods and services can increase in time.

Shield your finances from the detrimental impact of inflation:

Build Your Home Equity

If you want to get approved for a higher amount of loan in the future, make sure that you build your equity today. You can apply for a second mortgage on top of a first mortgage to save on interests and fees or to make improvements that will increase its future value. While equity usually pertains to the actual value of your home that you own or the amount you paid for. It can also refer to its future value.

It may take a couple of hundred dollars or thousands of dollars to increase the value of your home. But, if you follow the tips below, you can increase your home’s value with just a few extra bucks a month:

  1. Apply for a short-term low-interest loan (payable on installment basis) to pay for necessary repairs. Look into plumbing and heating problems, roof leaks, and the possibility of installing lightbulbs with slightly higher wattage to add to the value of your home on a budget. Clean the yard (if you have one), mend the fences, and paint your walls with fresh colors to make online casino it more appealing
  2. Make your house appealing to the realtor by doing a basic cleaning, eliminating unnecessary items and junks to make it more spacious and eliminating house smells
  3. Install energy saving devices and make environment friendly improvements that future buyers may look for in a home

The comparable selling price in your neighborhood can limit the value of your property. While you may not get a higher value for a home in a neighborhood with huge incidents of foreclosures, making small improvements can help you increase its value before you apply for a second mortgage, or before you retire.

Invest your money wisely

Choose the right investments. It can be in the form of UITF, stocks, bonds, or savings accounts with good interest rates. Some people invest in real estate in industrial areas, or in bustling cities for better returns in the future. Put in money into your retirement savings accounts, pay off loans you took from it and update your payments regularly. If you don’t have a good health plan, perhaps it is time to get one—as you are nearing your retirement age.

Evaluate your budget

Have you been spending excessively in the past year? Or was the expense due to existing debts? Perhaps it is time to earmark certain areas in your budget. Collect the receipts, bills and every proof of purchase you can get, create a spreadsheet of possible adjustments you can make and work towards minimum deviations to make your budget work.

Make lifestyle changes

What is the kind of lifestyle that you really want? As you inch towards your retirement age, it is important to decide how you like to spend it. If you want a life of luxuries, make sure that you have enough money to cover it. Otherwise, it is advisable to minimise luxury spending and to adopt a new lifestyle that matches your current and future income.

Augment your income to avoid the effects of inflation

It is never too late to seek for new opportunities to generate income. Explore fresh opportunities using your profession or business. Anyone can begin a company with a business loan. A company PR manager can start a consulting business on external communications, while a company accountant can also launch his own book keeping service. In the same way entrepreneurs who feel that they can no longer manage their business right after retirement, can take on private consulting jobs for startups.

Anything that would add value to your financial portfolio is worth the effort-as long as it will not put you into the same level of stress when you were still in active service. Interest rates on second mortgage, personal loans, consumer loans and basic commodities keep getting pricier over the years. What our grandparents spent for a carton of milk in the past may just be enough to buy a candy today. Change in price happens because of inflation.

The value of money reduces in time and allows us only to buy a smaller percentage of the commodity or item than its previous value. For example, if the inflation stands at 5% per annum, a $20 burger could get pricier by a dollar the next year. So, if you have a second mortgage, it is advisable to build your equity over time. And, if you don’t have one, you may look into the benefits of getting a second mortgage to have extra money not only to pay your existing debts but to pursue lucrative endeavours that would increase your income.

Categories
Personal Loans Financial Fitness Financial Planning

Prepare for Retirement with A Private Loan

As you near the retirement age, it is important to collate the amount that you need upon retirement and a retirement loan may help to put it into various investment instruments to grow your money. Retirement planning has two phases, pre-retirement which can be described as the pre-accumulation of wealth, and post-retirement which is the distribution of your accumulated financial assets. The accumulated amount must be sufficient to meet your needs and wishes.

Here’s how retirement loan can help you avoid running into retirement trouble.

Debt-free but with zero savings

If you’re in your 40’s, with no debts, mortgage, and no dependents to support but you have no investments nor savings, you can take out loans for bad credit to invest for your retirement.
It is a solid way to grow your funds through specific investment options, one of which your retirement fund.

Here are some of the practical investment strategies with low-risks:

  1. Set aside a 6-month emergency money into an accessible emergency fund.
  2. Asset allocation and index funds. The best way to lower the risk is to balance your portfolio by dividing it into three. For example, you put 33% into Bonds, 33% into an International Stock and 34% for government Stocks. If you have $100,000 that would mean $33,000 should be in bonds, $33,000 into International Stock (include emerging real test reinvestments) and $34,000 into government Stocks.
  3. Put money into a retirement fund. You don’t have pay into the system because the government’s general revenues pay for it. But, it is still advisable to get your own retirement fund if you want a comfortable retirement. Even if you are employed and covered with the mandatory savings account financed by your employer which you can choose to invest in various investment vehicles, retirement funds can give you extra income when you exit the workforce.

With debts and minimum savings

Payback the debts with debt consolidation retirement loan

Making payments to your credit card providers and lenders can be stress-free if you consolidate your loans. It will also save you some money which you can use for your needs, or probably to re-invest into a business (if you have one). Debts become manageable only when you have ample revenue flowing into your account at least on a monthly basis. So, if you are employed or if you run a business, it is important to lower your debt by making payments more manageable while you still have a steady stream of income. This way, you can avoid bankruptcy which can be very detrimental to your credit score.

Take advantage of tax deductions

You can save money by applying for private retirement loans, especially if you are going to use it for business purposes. You are allowed to deduct the principal and the interest payments on your business loans as business expenses. It could mean lower business income taxes and higher income for you.

Invest your money in variable or fixed costs

While you may not easily see returns on investments when you spend your retirement loan on fixed costs such as office equipment or furniture, it is up to you to make full use of these items to compensate for the lack of direct cash returns.

Remember

If you are using the money for variable costs, such as for the purchase of inventory materials to sell, you can expect an immediate cash inflow as a result. You can use the money to grow your business and set aside a spare amount for your future needs.

No one is too young or too old to prepare for retirement. it is just a matter of perspective—if you want to create a solid investment strategy based on your personality, needs and goals, then you must be willing to take the risk that your goals require., You may not be able to beat the market, nor shield your finances from inflation all the time. But, you can avoid unnecessary stress by protecting your savings, maintaining a disciplined approach to budgeting and refusing to ride the roller coaster shopping, vacations and investment trends that may damage your wallet.

Start amassing a nest egg while paying debts by choosing a private non-bank lender that can help you with personal loans and unsecured business debt consolidation, and put more money into your retirement savings to carry you through 30 years or more of your life.

Categories
Financial Planning Financial Fitness Short Term Loans

Starting a New Job? Here’s How Short-Term Loans Can Help You

Congratulations on your new job! Whether you applied for this job for experience, for pay, or both, here’s how short-term loans can help you get started on the right foot.

Cover Job-Related Expenses

If you were laid off, or you just started working for the first time in your life, you’ll eventually realise that you must spend money in order to keep your job. That means you need to get ready for job-related expenses, such as:

Transportation Costs

Your new job may require you to use your personal vehicle or take public transport for work-related reasons. Fuel and bus fares can be pretty expensive, especially if you’re travelling a long distance to get to the workplace. Since commuting may not qualify you for tax breaks, it is best to discuss the possibility of reimbursements with your boss for work-related travels. You can also enquire at the tax department about job-related tax deductions, should any of the allowable deductions apply to you.

Accommodation/Travel Costs

Does your job require you to travel to various places in order to find new clients or meet potential investors? If so, it is advised to discuss the travel expenses with your employer. If there is a delay between reimbursement can leave you out of pocket so short-term loans can help with this. Whether you will have to pay for it first and be reimbursed later or if they will provide the money upfront every time you travel. Just in case you’ll have to shoulder the cost first, you can rely on short term loans for quick cash. But, always remember to bill your employer so that you won’t have to foot the bill all by yourself. Otherwise, you need to shoulder it and apply for tax deductions for job-related costs later.

Work Wardrobe

Working in style doesn’t have to be expensive. If you have a uniform at work, things would be easier. But, if there’s none, you need to find creative ways to look neat, clean and a little bit stylish. Looking good and being comfortable can boost your productivity simply because you like what you are wearing and you’re proud of it. A short-term loan can help cover these initial expenses.

Look for discount stores that sell high-quality garments at low prices. Choose clothes that can serve double duty. For example, if you’re in the corporate world, buying black pants, skirt (for women) or a jacket would be a great idea. You can match it with a white shirt/blouse and black shoes. Purchase an all-weather coat and great fitting jeans. A tote bag can be very useful too, it can hold your work-related items and you can also use it on casual days. For $1,000 you could easily buy yourself high-quality outfits that last; these items will get you through the first few months of your new job.

Pay Your Existing Debts

Do you have a variety of debts? Perhaps you’re dealing with a car loan, mortgage or a credit card balance.

When you run up a large credit card balance, it won’t be easy to pay it off. The longer it takes you to pay off the balance, the more it can cost you.  Make sure that you pay at least the minimum required amount on time.   Defaulting on your debts will not only destroy your credit rating, it could mean additional interests and fees, plus increased risk of bankruptcy. While you’re starting on your new job, try to stay in control of all your loans – including your utility bills.

Set Aside Money for Emergency Needs

Put money aside for emergency needs so that you won’t be in a vulnerable financial situation when an unexpected expense hits you.

Set a Budget That You Can Live With

Nothing is more challenging than setting a budget without money to work on. If you would like to stick to a daily budget, get a short-term loan first, and consider it as your first salary. Create a daily budget out of that amount (make sure that you are basing it on the actual salary you are expecting to receive) and follow it. Plan your day and budget your daily meals, transportation expenses, utilities, recreational activities, etc. If you’re fond of eating out, perhaps it’s about time to eat healthy home-cooked meals. You might be too busy to cook on a daily basis, so why don’t you prepare your meals weekly? Stock your meals inside the fridge and simply heat them on the weekdays.

Australian Lending Centre can help employees achieve financial independence. Learn more about our short-term loans by making an enquiry today!

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Financial Planning Financial Fitness

How to Build a Financial Fitness Plan Using Quick Loans

Do you have a financial fitness plan? If you don’t, here’s a practical guide to protect your goals from potential financial crises using quick loans. Your savings accounts are the resources you will draw on to meet potential needs for expenses in life. Here’s how to maximize your wealth and save money for the rainy days using your borrowed money:

Determine Your Net Worth

Doing some calculation of your assets isn’t difficult. After all, you need to do this every time you file your taxes. How much is the total value of your assets? Anything that brings money into your pocket is an asset. And whatever lowers your assets is a liability. Practically speaking, a house on a mortgage is not an asset. It is collateral. The bank can get it if you default on your monthly payments. They can threaten you with a forced sale, and if you don’t pay on time—you’ll lose it to your lender.  For example, if you still have a mortgage then the fair market value of your house cannot be considered as your asset. You only have equity to that house or a portion of the principal that you have already paid off. While you can use that equity to get a second mortgage, you don’t own the whole of it.

Here’s how to compute it if the total value of your house is $500,000 and you paid off 50% of the principal, then you only have 50% equity on your house. That’s the only asset you have, not the fair market value of your home.  A lot of people think that a house on a mortgage is an asset because they have stored equities. The truth is that you only own the part you paid for.

Here are examples of assets:

  • Certificates of deposit
  • Checking and savings accounts
  • Real estate
  • Retirement accounts
  • Retirement benefits
  • Stocks
  • Home equity
  • Fully paid home
  • Fully paid car
  • Jewellery

Now, it’s time to add up your liabilities. All your debts are liabilities:

  • Car loan
  • Credit card debt
  • Income taxes
  • Outstanding bills
  • Remaining mortgage on your house
  • Student loans

Subtract all your liabilities from your current assets and that leaves you with your net worth.

Calculate How Much You Need

If you’re not excited about creating a budget, don’t fret; you’re not alone. Who wants to compute all the receipts anyway? Unless you have a habit of putting utility bills, reminders and memos on your fridge, doorposts and bedroom, no one can really expect you to jot down all your expenses. But, that’s the key to financial freedom.

If you want to achieve something, you must be ready to make some sacrifices and that includes keeping tabs of your expenses. So what if you’re mistaken for a stamp collector it’s your life. Those receipts can also serve as your guide next time you plan to purchase something.

Here are some important points to consider when making a budget:

Decide what you want to accomplish with your borrowed money  

As a borrower, the first question to ask yourself when obtaining quick loans is what you want to accomplish with that money within a month or in the succeeding months. That includes your net worth and the proceeds of your quick loan.

If you are living with your significant other/s and you think your budget will involve them, discuss what they expect to be accomplished too within a certain time period. Involving them in the discussion will make sure that you can narrow all your goals into a manageable list. By doing so, you can expect them to be supportive in adhering to your budget.

Allocate your budget towards financial fitness

Divide your financial resources into different areas you’d like to focus on. These include:

  • Daily expenses
  • Monthly bills
  • Investments (if you haven’t invested in stocks, bonds or a mutual fund, it might be time to look into it).
  • Business: This is the best investment because you’re actually growing your money. Whether it is small scale or large, the mere fact that you are putting money into it and expecting profits is a deal-breaker. If you really want to save money, make sure that you grow whatever you have so that you can save extra money for future needs.

Revisit your budget and check if it’s helping your financial fitness

Review your budget and update it on a monthly basis to determine whether there is a shortfall and if you can make further cuts.

Financial health is something that we work on every day. A minor glitch can cause havoc on our finances. But, you can make it with the right financial strategy and quick loans product. Discover everything you need to know about quick loans by talking to the loan experts at Australian Lending Centre today. Enquire now!

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Debt Consolidation Financial Fitness Financial Planning

Debt Consolidation vs Creating Your Own Repayment Plan

Choosing the right financial recovery tool can be quite a headache! What’s the best choice between debt consolidation and creating your own repayment plan? What are the factors to consider when making a decision? Read on and find out.

Debt consolidation

If you have multiple credit card balances or debts it is advisable to take out a new loan to pay them off. You can save money or pay your debt sooner by borrowing money at a low interest rate to pay off high-interest loans or credit cards. Aside from making fewer payments each month, you only have one due date to recall–this lessens the likelihood that you’ll miss payments. But, if you are not careful in choosing a reasonable debt consolidation loan, you may end up deeper in debt because of high interest rates or hefty fees and penalties. So, before you choose a debt consolidation company, make sure that they are interested in educating you on how to use your debts wisely to achieve financial freedom as much as they are interested in lending money to you.

repayment-plan

DIY debt repayment plan

Do you have a knack for DIYs? Then, think about getting out of debt without asking for external help. If you’re always late on making payments, or if debt seems too much to handle—it’s time to take the reins. But fixing your debt problems without professional help is a bit challenging for 3 reasons:

  1. You’re in this mess because you created it.
  2. You can’t pinch your skin hard enough. When it hurts, you’ll surely let go. The same thing goes to repayment plans. It’s hard to pressure yourself-because you may change the rules when it becomes difficult to follow.
  3. If your debt is too high and your income is low—you may end up getting a new loan to pay off the high-cost debts. That means you’re paying a loan by a new loan while leaving all other debts unpaid.

Here are some useful tips when choosing between debt consolidation and DIY repayment plan:

Reflect on what you did in the past 3 years

It’s so easy to label our “year” as “tight” or “bad” when debts pile up and income lessens. But there might be goals you’ve met and lessons you learned along the way. Make a blunt and honest assessment not just of the things that went “wrong” but your accomplishments as well–small or big, they don’t matter.

What were you hoping to achieve 3 years ago? Maybe it was a new house or car, a sales goal or a vacation. List down at least 5 things you planned to achieve and whether they were realised or not. If not, write down two reasons why you didn’t achieve them. Next, list 2 things you can do to achieve it next time—this time-debt consolidation and DIY repayment plan. Focusing on those two main strategies can help you come up with a tangible solution for your debt problems.

change-life

Check your readiness to change your financial life

Maybe you’re set to make some lifestyle changes today because of escalating interest rates, late fees, and frequent calls from creditors and debt collectors. But, what would happen if you only have one creditor to pay each month? Will you go back to your old borrowing and spending habits? If you make your own debt repayment plan—how determined are you to stick to your goals and resist the urge of adjusting it when they’re getting harder to follow?

Before you can truly determine if you are ready to consolidate your debt or make your own repayment strategy, take a step back and give your most honest answer to these questions first:

  1. Why do I want to consolidate my debts or follow a DIY debt repayment tactic?
  2. What will debt consolidation do that my current system of debt repayment cannot? Or, what other things can I do to make my credit status better, that I am not currently doing today? It’s because if you want to make things work, make sure that you get rid of the old strategies that don’t work and replace them with steps that can actually work. If you have many debts and you cannot manage them well because of varying interests and due dates, then why don’t you try debt consolidation? If you have tried hiring professional help in the past but it didn’t work out, maybe it’s time to consider making your own repayment strategy.

Ask Yourself

How much money do you have right now? Can you afford to buy what you need and pay for all your monthly debt repayments? If you’re hard on cash, then it is advisable to get debt consolidation. You will be able to save money on interests and you have a good chance of reducing your monthly repayments. The same thing goes to those who have enough funds but they have a poor debt strategy. Debt consolidation helps you pay on time because there’s only one debt to pay.

Contact Australian Lending Centre today to learn more about the most reasonable debt consolidation program and the debt repayment strategy suited to your condition. Apply today or call us now on 1300 138 188.

Categories
Bad Credit Loans Financial Fitness

Top Downsides of Loans for People with Bad Credit

Bad credit is something that almost every Aussie struggles with at some point; the only difference is the magnitude. If you’re in a position where your bad credit reaches the lowest of points, then you may be affected more than you can imagine. While bad credit loans provide opportunity for those who are told no by banks, there are downsides of bad credit loans.

There are several lenders out there offering loans for people with bad credit. Every one of them seems like a gift sent from above if you are looking to borrow money. Keep in mind, that if you have bad credit, you will not reap the same benefits as your friend with clean credit. The reasoning behind that is simple: the bank trusts them because have always paid their loans on time. You, on the other hand, will be presented as a red flag.

Here are the top downsides of loans for people with bad credit

1. You’ll pay more in interest

When the bank looks at your application, all they will see is that red flag saying “risk” to them. Most of the time, you will end up paying more in interest than you would for the actual loan. If you take out a loan as a person with bad credit, you’ll pay a lot of money for a longer time span. Where the regular loan would have been done in one year, the bad credit one may take up to three years or more. Worse off, that’s money you won’t even be allowed to use.

2. It may affect your credit score

Here’s a thought: if you borrow money, it means that you reached a point where you are so tight on cash that you can’t go forward without borrowing. Keep in mind that this money needs to be paid back in full, and then some – so imagine what would happen if you can’t pay that money when you are required to.

When it comes to loans for people with bad credit, keeping up with the monthly payments is a great challenge, so you’re bound to miss a payment or two at some point – which will show on your credit score. If that score wasn’t bad enough, imagine what would happen after you fail to repay the loan.

3. You’ll have more fees to cover

Traditional loans have their own fees. They do not compare with the fees that you’ll have to handle if you are going for loans for people with bad credit. These fees may include:

  • Origination fee: These fees are required to process your loan application, and also open the loan if approved.
  • Late payment fee: Unfortunately if you are one minute passed your deadline, you will be charged a fee for being late. The more you put it off, the more that fee will grow.
  • Check use fee: Some bad credit loans will charge you an extra fee if you decide to use check withdrawal.

Bad credit loans sound dreamy and all that – until you have to pull out your wallet and pay up some fees that you normally wouldn’t be required to.

4. You’ll need collateral

You will need to bring out some collateral when it comes to loans for people with bad credit. They will need the certainty that you will pay the loan. That can only happen if you feel like your house, car or your other belongings are in danger of being confiscated by the bank.

Not all lenders ask for collateral; however, keep in mind that those who do not ask will require that you pay even more in interest.

Loans for people with bad credit can be very useful to get back on track, as long as you make peace with the downsides. At Australian Lending Centre, we are there to help you in a pinch and offer you a convenient repayment plan with competitive rates – or simply give you some advice. Contact us for a free consultation or a free assessment for a loan catered for you.

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Mortgage Financial Fitness Financial Planning Home Loans

Will My Car Loan Affect My Mortgage Application?

A car loan can help you a lot if you plan to get your next car faster. However, a car loan can affect your mortgage application or other types of significant loans. If you are planning to buy an expensive car, this means that you will require a large loan. That car loan can impair your future borrowing power. But this doesn’t mean that you need to choose just one of these two.

Let’s see how a car loan can influence mortgage applications and how we can deal with such a situation.

First Things First

When you apply for a home loan, you will need to provide information regarding your financial status. This means that you will have to give documents regarding your monthly income, assets you own and other ongoing payments. This is how a lender will determine whether you can pay back the loan or not. Every lender wants to avoid doing business with people who might not be able to keep their word because of their financial problems. They want profit, not excuses.

If it were a personal loan, your mortgage application would be fine. But since we are talking about an expensive car loan, your mortgage application might get rejected due to your other massive loan. Either that or come with a lot of restrictions.

mortgage-application

Will My Car Loan Affect My Mortgage Application?

A car loan will have a high impact on your finances. Given all the taxes you need to pay, a car loan can take most of your monthly income. Still, aiming for a cheaper car might be of some help. Since cars tend to lose their value quite quickly, getting a very expensive one may not be a good idea, especially if you intend to apply for a mortgage.

Mortgage applications will act the same so that you will be left with little to no money. This is why a lender will probably have to refuse your mortgage application.

A lender wants to know that you will pay your mortgage and you won’t default on it. He will analyse your assets and other methods of income. If he sees that you have the financial power to afford a car loan and a mortgage at the same time, he might give you the green light. If not, it might be better for you if you only had one.

Defaulting on a mortgage is not a good sign for your lender and your finances. Car loans and home loans can quickly turn into uncontrollable debts, and you might end up losing everything. So don’t think of the lender as the bad guy, but be objective and calculate what you can and can’t afford, because in the end, if you are dishonest, you will suffer the most. Because banks and lenders make sure they never lose.

eligible-for-loan

Can I Still Be Eligible for a Mortgage Application?

Yes, you can. Your car loan will affect how much you can borrow, but if you don’t want an expensive house, that a limited amount of money can be just enough. If you can’t get the sum you need, you can search for an affordable home. When it comes to loans and money, flexibility is a must.

If you want to increase your chances of getting your mortgage application approved, then it’s time to clean a little bit of your credit file. Pay your debts and try to repair your bad credit. Also, consider debt consolidation as a possibility. Lenders will check your credit to find out who they are dealing with and also what other assets you own, just in case they might have to make up for that loan with something else rather than your money.

Having a savings account is a great idea. It makes you more trustworthy and responsible in the eyes of your lender. Let’s not forget that having some savings might help you quite a lot to reduce the amount you would apply for.

Also, try to talk to your lender. The more information he gets regarding your situation and income, the bigger the chance of getting your request approved. Don’t forget to tell him your exact plans.

suitable-car-loan

Final Thoughts

So, the short answer is that a car loan can influence mortgage applications and under certain circumstances, it can get your requests denied. But do not let yourself discouraged. Evaluate your possibilities, cut down on the unnecessary expenses and, if you can, try to pay ongoing debts before applying for a mortgage.

You can talk about these details with Australian Lending Centre. Our friendly consultants will tell you about your chances of receiving a loan and, if you fit our criteria, you may even get a good mortgage option. Advice never harmed anyone so you should not miss the chance of clarifying your options face to face with an expert.

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Credit Card Consolidation Debt Consolidation Debt Management Financial Fitness

Credit Card Debt Trap

Australians spent late 2009 on a credit card bender which has led to a 25% leap in work for debt collectors. Don’t fall into the credit card debt trap.

The debt trap is set to worsen, a new credit expectations survey has revealed. The survey has indicated that 4 in 10 Aussies will rely on their credit cards to pay essential bills this quarter.

The latest Reserve Bank figures show consumers spent more than $20 billion on credit and charge cards in November 2009, pushing the average credit card account balance to $3,196.

In further evidence of the growing dependence on debt, the survey has found 43% of Australians expect to use their credit cards to pay for otherwise unaffordable expenses in the March quarter.

In the case of 18 to 34-year-olds, 56% are expected to use credit cards to pay some of their bills, which is up by 11% on the previous quarterly survey. Those most likely to rely on credit are young adults and families with children, while nearly half of all families with children are expected to be paying bills with credit cards – up by 8%.

A credit card debt continues to rise; the amount of repayments aimed at reducing credit card debt has drastically fallen, forcing Aussies everywhere to look for credit card consolidation solutions.

Quick tips on credit card consolidation and debt reduction

  1. Use the equity in your home – refinance your home loan and consolidate credit card debt quickly
  2. Debt consolidation loans – Consolidate credit card debt into one affordable payment
  3. Pay your credit card debt in order of priority
  4. Credit card consolidation with a balance transfer
  5. Cut up your credit cards and avoid the temptation
Categories
Debt Management Financial Fitness Financial Planning

Cut Costs and Grow Your Savings

The world might be slowly coming out of a recession, however, many people are still struggling to make ends meet. This could be largely due to a lot of people being made redundant, and still looking for work or only working part-time due to fewer job opportunities.

If you fall into this or a similar category, and you find that you are struggling to make your repayments, read on for some helpful hints on cutting household costs.

Cut Costs – Build Savings

Phone Bills

An increasingly popular way to make phone calls nowadays is by using VoIP (Voice over Internet Protocol). It’s a way of making and receiving calls over the Internet and it can work out to be much cheaper than using a traditional Telco for your phone. For more information, take a look at Skype.

Bank fees

Making a phone call to your bank every six months to see if they can do anything to help you cut your bank fees is very worthwhile. Use the call as an opportunity to check that your money is in an account that generates the highest interest possible. Also check to see if your bank has a fee-free option.

Energy

We have heard its good for the environment, but don’t forget that by turning off electrical goods at the power point, or even your gas system when going on holidays, are good ways to cut down on utility bills. Also, look into what time is best to do a load of washing, or turn on the dishwasher, as it is on-peak and off-peak times throughout the day – this means the electricity to run your electric goods are charged at different rates depending on what time of day it is.

Food

Spend more time eating at home, rather than going out for meals, and take your lunch to work instead of purchasing food and coffee on a regular basis.

Debt Consolidation

Debt consolidation or ‘consolidation loans’ are perfect for those who need credit card consolidation, personal loan consolidation and even home loan consolidation, and they can drastically reduce the amount of interest you pay to service your debt.

Australian Lending Centre can offer you a range of debt consolidation options so that you can combine all your monthly outgoings into one lower affordable monthly payment.

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Bad Credit Loans Financial Fitness

Avoid Having A Bad Credit Rating

If you haven’t paid your bills, or if you’ve had your power cut off, your car repossessed or skipped payments, exceeded credit card limits or defaulted, you could be refused a loan or be charged a higher interest rate by most banks and lenders.

Credit files contain records of overdue payments of 60 days or more from when you have been sent a letter notifying you of the default. They also include ‘clear out’ listings – when the credit provider has unsuccessfully tried to contact you in writing and has reported you as a missing debtor.

Bad Credit Rating

Having a bad credit file can be costly in the long term. A bad credit history will usually mean that traditional lenders see you as a credit risk and therefore, it will be more difficult to obtain finance. However, the Australian Lending Centre can provide support to those seeking bad credit loans and find the most competitive interest rate with the best terms of repayment available.

Clear up any bad credit disputes

If you believe that a creditor has unfairly listed an overdue account on your credit file, you should contact them and ask for an explanation and for the incorrect information to be corrected.

Repercussions of a bad credit file

If you have defaults or marks on your credit file it can affect a lot of your financial options, such as;

  • Credit and loan applications may not be approved
  • Difficulty getting approved for an apartment
  • You may need to pay security deposits on utilities
  • Creditors and lenders may only offer you credit on a higher interest rate
  • You may struggle to get a mobile phone contract
  • Your insurance premiums may be higher
  • If you have overdue bills you may have to deal with calls from debt collectors
  • You may find it difficult to start your own business
  • Difficulty purchasing a car

If you are at a point where it has become too hard to manage your debts and make your repayments, speak to Australian Lending Centre as we may be able to assist you with debt consolidation.

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Financial Planning Financial Fitness

Generation Y Become Cautious Investors

Generation Y has never seen a recession. A survey has found that they are taking notice of the current global financial crisis, which has weakened their appetite for investing.

Once known as being among the most adventurous and carefree of all investors, those born in and after 1980 have suddenly become more conservative than their baby boomer parents. The portion of Generation Y who treat investing as a hobby has dropped from 30% in 2008 to just 7% in 2009.

This collapse in interest in investment marks a significant shift for a generation that until recently had only known a rising share market, a strong economy and low unemployment.

For Generation X (those born in the decade or so before 1980) the proportion of those investing for a hobby had a gentler decline, from 18% in 2008 to 14% in 2009.  The Baby Boomers (the generation before X) remain a powerful force in investment as they have been less deterred by the market turmoil.

The experience of a falling share market, collapsing companies, an uncertain economy and high unemployment have contributed to generation Y developing into cautious and conservative spenders when it comes to investment.

On the other hand, Generation Y has actually increased the money that they spend on going out, by 31% compared to the same time last year. They are spending more on smaller purchases such as iPhones, GPS navigators and electronic games.

The comfort of still living at home with their parents contributes to their ability to spend more frivolously. The amount of twenty-somethings still living at home has grown by around 300% in the past 20 years.

In saying this, Generation Y’s are still striving to save that ‘housing’ deposit as they follow in their parent’s footsteps by wanting to invest in property.

With the help of Australian Lending Centre, the objective of owning a home may be achieved with competitive interest rates and a variety of tailored home loan options.

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Personal Loans Financial Fitness Short Term Loans

Celebrity Lifestyles Create Debt for Young Australians

Many Australians, especially the younger generations are obsessed with celebrity image, and pressure to keep up with the ever-changing style of the stars is driving an annual $8.7 billion credit card spending spree. The modern day cult of celebrity is now so pervasive that young men and women alike are racking up expensive credit card debts to copy the looks and lifestyles of the rich and famous. Matching celebrity lifestyles is creating debt for young Australians at an astounding rate!

A recent study conducted on the rise of celebrity culture in Australia, reveals that almost 90% of young Aussie woman feel that they are expected to match the idealised images and designer wardrobes of the celebrities. This isn’t really surprising when you consider that celebrities are found on every source of media, not to mention they can be intimately followed by the likes of reality television series and social networking sites such as Facebook and Twitter.

The biggest culprit of this obsession is women aged 18-34 years. Two in three women admit to using their credit cards to purchase items to mimic celebrity style. This dangerous fascination is leading to many Aussies maxing out their credit cards by spending thousands of dollars a year on clothes, accessories, hairstyles and beauty treatments popularised by the stars.

However it’s not only the women, nearly half of Aussie blokes aged 18-34 years admit to being influenced by the style of Hollywood’s leading men. Aussie men have also admitted to purchasing clothes, beauty products and even sports cars to emulate a celebrity lifestyle.

Celebrity Endorsed Debt for Young Australians

Both men and women are likely to buy the never-ending ranges of celebrity endorsed products, whether it is a celebrity promoting a company’s product or the product itself is owned by a celebrity. Just look at all of the celebrity fragrances on the market as one example.

Many young Aussies are none the wiser of the repercussions their spending habits could have on their future. Not only are they setting themselves up for years of debt and interest repayments, they are also potentially facing bankruptcy. Bankruptcy is the worst financial result to any individual’s life. By filing for bankruptcy you have instantly put yourself in a position of uncertainty, as it can negatively affect so much of your financial freedom.

Limitations of bankruptcy

If you are bankrupt, you cannot hold certain licenses, there are restrictions on employment, and you may be required to pay part of your income to a Trustee. You also must obtain the Trustee’s permission to travel overseas, some of your divisible property may be sold and any divisible property you acquire during bankruptcy, vests in your Trustee. Also when you are bankrupt you are limited to obtaining loans and credit.

Manage your debt

It is important to get a hold of your finances before they become too difficult to manage. Many young Aussie is excited by their ability to use their first credit card, and they can easily forget that every payment needs to be repaid, and due to interest you usually end up paying more for the item as a result of placing it on your credit card. Credit cards should be used as a tool for purchases such as airfares and for emergencies. You should intend to make the repayments in full as soon as possible to avoid accruing interest charges. If you find that you need to make everyday purchases such as groceries or petrol on your credit card because you lack the funds to purchase these items from your income, then you could be heading for a trouble-filled financial future.

If you are finding it difficult to make your debt repayments on credit cards or personal loans then you should speak with one of our experienced debt consultants today.

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Debt Management Credit Card Consolidation Financial Fitness

Don’t Carry Debt in an Economic Downturn

Currently we are facing an economic downturn. In the final quarter of 2008 there were 1,991 debt agreements signed. According to ITSA this figure is up 37.12% on December 2007. This figure illustrates the increased number of Australians’ who are facing financial difficulty.

Carrying debt in a downturn can be more dangerous than ever. Predominantly people are getting themselves into financial difficulty through the use of credit cards and personal loans. According to Chris Riotto, Managing Director of Australian Lending Centre;

“In a downturn, it is more important than ever to seek debt advice. An increasing number of Australians are having to cope with a reduced income or unemployment, doing this with substantial debts can be particularly difficult, that is why I stress the importance of seeking advice at the earliest possible sign of trouble”.

Chris Riotto CEO ALC

A professional can assist you in sorting your financial troubles by analyzing your current situation, setting financial goals, and assisting you in achieving them. In some cases people may only need to cut back on their current expenses whilst others may need to look at debt solution products, either way, the sooner you get professional help the quicker and easier it will be to get your debts under control.

Assess your Debt in the Economic Downturn

Fido is currently advising consumer’s of the following:

“Ignoring debt problems will makes things worse. Interest will probably continue to be charged on top of the debt and any possessions secured against the debt (e.g. your car) may be repossessed and sold. Also, your credit rating is likely to be affected and you might be sued.”

Fido

It is often a good idea to question your financial situation, sooner rather than later. If you can answer yes to any of the below questions, it may be time for you to talk to a debt advisor.

  • Do your monthly expenditures exceed your monthly income?
  • Does your credit card balance feel like it never decreases?
  • Are you finding it difficult to save a regular monthly amount?
  • Do you need a loan to pay off your debts?
  • Have any of your creditors been in contact with you regarding the payment of your debts?

Readjusting your current spending patterns could significantly help to get you out of a poor financial situation. The Australian Lending Centre knows all about debt and have helped many Australians with financial problems. Australian Lending Centre provides a free, confidential service to all customers, call us on 1300 138 188. We offer effective debt management solutions to become debt-free.