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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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News Financial Planning

Jobseeker Changes – Reduction Incoming…

COVID-19 has created unprecedented challenges for Australians. For many, their business’ have been barely able to survive, others have lost employment entirely. As a result, the Australian government instituted specialized support payments – Jobseeker and Jobkeeper. In effect since late March, these support payments will now begin to taper off. With a plan to cease them entirely after Christmas. From 25 September, the criteria for these payments have been tightened and amounts reduced. Phasing out of the Jobkeeper and Jobseeker changes signal a potential economic collapse. In addition, significant financial distress for millions of Australians already struggling. 

JobKeeper and Jobseeker Changes 

Beginning September 25, the JobSeeker maximum fortnightly rate for a single household will drop from $1110 to $810, while JobKeeper is set to be reduced to a maximum of $600 a week from September 28. 

What Are The New Conditions?

To continue to receive support, you must ensure you meet the updated criteria and submit all required information in the period requested.

jobseeker reduce

JobKeeper Changes

  • Show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period.
  • Have satisfied the original decline in turnover test
  • Pay your eligible employees at least the JobKeeper amount that applies to them each JobKeeper fortnight. 
  • Keep up to date with reporting employee numbers and who is receiving what payments based on the tiered payment system. 

The Australian Treasury offers key updates and requirement details for Jobkeeper payments. 

JobSeeker Changes

  • Taper rates shifted, from September 25th an updated income test will apply. Stipulating a loss of 60 cents for every dollar of income earned above $300 per fortnight. This will apply for recipients of both JobSeeker and Youth Allowance.
  • A minimum of 8 jobs per fortnight will need to be applied for, compared with the previous 4 per fortnight. 
  • Assets tests for JobSeeker will be reintroduced and will apply to new and current recipients of the payment. These had been paused.
  • Your partner’s income will be taken into account. You will lose 27 cents for every dollar they earn above $1165 per fortnight.  
changes to jobseeker

Short Term Solution

Australia’s unemployment at its highest rate this century. Asia-Pacific economist Callam Pickering noted that the official unemployment rate is 9.1 percent, having improved considerably from 11.6 percent in May. However as Ernst & Youngs’ chief economist, Jo Masters has pointed out, that number would be higher still if not for JobKeeper. As within these statistics, there were still 165,000 people counted as employed but working zero hours. In fact, the incentive to work was reduced significantly with the doubling of the jobseeker payment. Some employers reporting challenges in sourcing workers.

With over 70 billion already meted out in support payments in the past six months, its a model that cannot be sustained longer term. Meaning our unemployment levels are set to rise, high level unemployment goes hand in hand with economic collapse. 

The second phase of subsidy payments will continue until December 2020, at which time more reductions are anticipated. 

What This Means For Australia’s Economy

For the past six months, Australian businesses and individuals have been receiving support payments. Keeping them either employed in businesses that would have otherwise already folded, or paying living expenses while they searched for work. 

The expectation is now that a significant number of businesses will now inevitably close, pushing unemployment even higher. This also places millions of Australians in financial difficulty. Pair this with the end of ‘mortgage’ holidays and moratoriums on repayments of loans and credit cards and it signals disaster. 

While a cut in government spending seems like a smart decision in the long-term, it is estimated it will cost our economy close to 31 billion. Cutting the Jobseeker and Jobkeeper will further reduce our GDP and employment. 

With less household spending possible, consumption of goods decreases, further impacting our economic recovery. Analysis by Deloitte Access Economics has determined this reduction in spending will lead to the loss of a further 145,000 full-time jobs over the next two years.

jobseeker change

Found Yourself In Financial Difficulty?

Are the jobseeker changes or shifts in jobkeeper eligibility going to cause you financial hardship? You should speak to the experts at The Australian Lending Centre. We can support you to refinance, take out short term loans, enter debt management agreements, and more. 

Don’t lose sleep wondering about the next steps and fearing your finances. Our expert staff can help you assess your situation and come up with solutions. Our goal is to help you manage this challenging period and find a path forward. Managing your debts may be the key to surviving the extended challenges we face economically due to COVID-19. 

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News Financial Planning

Risk of Withdrawing Super Early

The entire world has been affected by the global pandemic, COVID-19. Businesses have closed and many people have lost their jobs. In Australia, almost one million people have found themselves out of work as a direct result of the virus. These people face expenses including mortgages, rent, groceries, and bills to pay. Yet now with little or no income to rely on, times are harder than ever.

While the Government released both the Job Keeper and JobSeeker payments to help out, they also gave Australians early access to their Super to keep them afloat. While this seems like a great initiative, there are of course risks involved that need to be weighed up. So what is the risk of withdrawing Super early?

Accessing Your Super Early

Those who have been affected financially by the COVID-19 pandemic can now access their Super early. Eligible Australian citizens are able to access $10,000 for the 2020-21 financial year. To be eligible, you must be:

  • Unemployed
  • Eligible for JobSeeker Payment, Youth Allowance, Parenting Payment, Special Benefit, Farm Household Allowance.

Plus, on or after January 1 2020, either:

  • Made redundant.
  • Had your working hours reduced by 20% or more.
  • Were a sole trader and your business was suspended or there was a decrease in turnover of 20% or more.

Already, about 2.3 million Australians have gone down this route. This is in an effort to get the financial help they need during the pandemic. So what is the risk of withdrawing Super early?

withdraw super early

Risk Of Withdrawing Super Early

This may seem like a great idea in theory. However, there is plenty of risk that comes with withdrawing Super early. Here are just some factors to consider before making a decision about whether it is worth it to you:

The dollar amount:

$10,000 may not seem much to you right now. Especially considering how much it can help you out in your current predicament. However, when it comes to the risk of withdrawing Super early, you need to look into the future.  While it may be $10,000 now, what will it look like down the track?

According to Industry Super Australia (ISA) Chief Executive Bernie Dean, a 20-year-old who accesses the full $20,000 available under the scheme (which applied to the financial year that has just ended as well) could lose more than $120,000 from their retirement. For a 40-year-old this works out at $63,000 by retirement. This is a significant cost to factor in when making a decision. That $10,000 has the potential to grow to a much larger amount by retirement.

Life Insurance:

About two-thirds of Australians hold their life insurance through their Superannuation fund. Taking out $10,000 means those who are new to the workforce could be left with nothing in their account. This could mean they are no longer covered by insurance. For others, the amount that can be claimed drops with this withdrawal.

Unnecessary Spending:

Your Superannuation is there for a reason. It is to ensure that you can comfortably retire in the future. Many people accessing their Super early are actually using it on things that don’t need, which is an inherent risk of withdrawing Super early. Recent figures have shown that Australians who have accessed their Super spent nearly $3000 more than normal in the fortnight after receiving it, with about two-thirds of the additional purchases on non-essentials.

Knowing the risk of withdrawing Super early, what are the options?

withdrawing super early

Look At Your Entitlements

The first step is to look at what you are entitled to. As mentioned above, the Australian Government has stepped up during the pandemic to help those who have lost jobs and businesses, with a number of payments, including JobKeeper and JobSeeker. Do your research and see what you can apply for to help you out, before resorting to other measures. It may be enough to keep you on track.

Consider Debt Help

While no-one wants to have to take out a loan to cover their debt, it can be a much better option than accessing your Super early. A loan will not only give you the boost you need to get back on track but knowing you have to repay it in the near future will help prevent any of the unnecessary spending that occurs as a result. Instead, if you pay back your loan on time and meet your repayments, it will actually have a positive effect on your credit score and help you get any additional loans, such as a mortgage, down the track.

Get Debt Help Today

If you are wondering what the right option is for you, then speak to the experts at the Australian Lending Centre today. We offer the best advice for your personal situation and help you get access to the help you need in a way that is right for you.

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Debt Consolidation Debt Management Financial Planning

10 Steps To Get Out of Debt

If you find yourself in debt, which many people have since the COVID19 epidemic, it’s important to remember you aren’t alone. Whether you have made some bad financial decisions, or things beyond your control have occurred, such as unemployment, injury or illness, there are ways you can get back on track. There are many benefits to getting yourself out of debt, such as an improved credit score and lifts in mental health, so while it may feel daunting at first, a simple few changes you can make a huge difference to your lifestyle. Here are 10 steps to get out of debt.

10 Steps to get out of Debt

1. Put your debt in perspective

The first of 10 steps to get out of debt is to look at where you currently are. Answer the following questions:

  • How much debt am I in?
  • What interest am I paying on these debts?
  • How many debts do I have?

If you can make a note and get in a clear head about where you stand, you can prepare a way forward to get on top of it.

2. Set a budget

This is the best way to oversee your finances. It takes into account how much you are spending each month and on what. Start by writing down your income, and all your fixed expenses each month. This includes insurances, medical and food, dining out and entertainment. Take this away from your income and see how much is less. If it’s less than zero, then you can clearly see you are spending more than you earn and need to make some changes. See where you can cut down. Then, allocate a certain amount to paying off your debts. If you are after a spreadsheet to note all this down, there are plenty of free options on the internet.

3. Start paying!

Start paying off from highest interest rates to lowest, this will save you money in the long run. It is referred to as ‘avalanching’. This means the debts that are costing you the most in interest will be paid off first, before tackling the next one.

4. Lower your interest rates

ext step, it is worth looking at whether you can lower your interest rates. Having high-interest rates can make it much harder to pay off the debt. The easiest way is to contact your lender, and simply ask. If you have a good history of paying off your payments, it can help you succeed.

5. Consider Debt Consolidation

If you don’t manage to lower your interest rates, take a look at whether debt consolidation could be an option for you. This is the process of taking out a single loan to pay off all your other loans. This has the advantage of getting you a better interest rate and helping you keep on track with paying off your debt. Everything is in one place and you make one payment a month – not multiple.

get out of debt

6. Pick up a side hustle

Ever considered renting out a room in your home? Perhaps you have a hidden talent that can get you some extra work on the side? Now is the time to pick up as much work as possible to pay back your debt in a timely manner.

7. Put away those credit cards

The one thing you don’t want while trying to pay off debt is to go into even more debt. Hide those credit cards so that the temptation won’t even be there. Out of sight, out of mind.

8. Sell, sell, sell

Another great way to earn some fast cash is to sell things around your home that you no longer need. You can use eBay, Gumtree or even Facebook marketplace to list your unwanted goods. This could give you a good cash injection boost to get you started.

9. Ask for help

If you have made all these changes but are still struggling, ask for help. Speak to your lender and see if you can renegotiate the terms of your debt. You may even reach out to the family for a helping hand to get you through a bad period. Just getting a boost to start you off can be all you need when it comes to getting out of debt.

10. Declare bankruptcy

A last resort that you want to avoid if possible is declaring bankruptcy. This will have a long-term impact on your credit file and can affect other areas of your life. It is worth seeking professional advice before going down this route and making sure you have exhausted all other options.

Looking for some professional advice? Speak to the experts at the Australian Lending Centre. We can help you pay off your debts and get back on track. By following these 10 steps to get out of debt, you will be able to change your lifestyle and live within your means in no time.

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Debt Management Credit Card Consolidation Financial Planning Interest Rates

How is APR Calculated?

Wondering exactly what APR is and questioning how is APR calculated? We have all the answers you need to help you discover what the APR is and why it is so important when it comes to interest rates and borrowing money.

What is APR?

APR, or annual percentage rate of charge, refers to the interest rate for a whole year. Rather than looking at a monthly fee or rate charged on a loan or credit card, the number is expressed as an annual rate instead. Many people confuse APR and interest rate, but there is a clear difference between the two. Understanding this can make a huge difference when it comes to your repayments.

If you have a credit card or a mortgage, then it is highly likely you have heard this term before. But have you ever taken the time to work out what it actually means for you? While it doesn’t make much difference when it comes to paying off your credit card, it can make a huge difference to your monthly mortgage repayments. Therefore, it needs to be looked into carefully and calculated properly, especially when it comes to choosing between lenders.

While an interest rate may look good on surface level compared to other lenders, it can be deceiving depending on their APR. We show you why.

Interest Rate Vs APR

Firstly let’s take a look at the difference between an interest rate and an APR. So how exactly does APR differ from the interest rate? Put simply, the interest rate is the cost of borrowing the money. For example, if you borrow $500,000 with a 5% interest rate, this is the principal plus interest. Your interest for the year will be $25,000, or a monthly payment of $2085. Simple, right? So where does APR factor in?

APR on the other hand, includes other costs associated with borrowing money and is calculated as an annual figure. This is what makes the APR a much more effective way of determining the costs associated with a loan. These fees can include broker fees, closing costs, rebates and more. Just like the interest rate, they are often referred to as a percentage.

shutterstock 586787480

How Is APR Calculated?

Let’s take a look at the example above. You have purchased a home for $500,000 and we know that the interest owed to the financial institution on top of this is $25,000 a year. But now we have to look into what other costs were incurred in this process, such as:

  • Did you pay any closing costs?
  • Did you have mortgage insurance?
  • Was there broker fees?
  • Rebates?
  • Any other costs?

These fees are added to the original loan, to give you a new loan amount. For example, if these fees amount to $5,000, then your new loan amount is $505,000. The interest rate stays the same at 5%, but a new annual payment is calculated against the new loan amount. Instead of paying $25,000 annually it is now $25,250.

So, how is the APR calculated from all of this?

You need to take the new annual payment ($25,250) and divide it by the original loan amount ($500,000). This will get you 5.05%.

In this scenario the APR is 5.05%, while the interest rate is 5%. As you can see, APR is the figure you need to pay attention to as it actually refers to the amount you will be paying back.

What Does This Mean for Loans?

When it comes to borrowing money for a big loan, such as a mortgage, many borrowers get hung up on simply comparing interest rates. The problem with this is that it does account for any of the upfront costs that are involved with the loan. This can account for a high APR. While the interest rate may have initially looked good, when you factor in the APR, it may not be the best offer out there for you.

The part most borrowers find confusing is when they come across two different lenders, offering the same interest rate with the same monthly repayments, but with different APRs. What this means is that the lender with the lower APR requires fewer upfront fees throughout the process. All in all, this will offer the better deal for you.

Having a clear idea of what an APR is and being able to answer the question how is APR calculated will make huge difference when it comes to taking out a loan. You can use this information to make more informed choices that leave you financially better off as a result.

Australian Lending Centre

Get in touch with the experts at Australian Lending Centre for professional advice about APR’s and how they are calculated. We can help you make informed decisions related to your circumstances without getting lost in the numbers. We are always here to help.

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Debt Consolidation Business Consolidation Loans Debt Management Financial Planning Short Term Loans

Coronavirus: Financial Security in a Pandemic

Financial security and pandemic. The two don’t really go hand-in-hand, do they? As if facing a global health crisis wasn’t terrifying enough, the world’s economic nosedive is hitting Australian families and individuals hard. Really hard. But as with most things in life, rest assured there will be light at the end of the tunnel. As cheesy as it sounds, we really are all in this together. Out of this strange and unwelcome period will come a brighter future for Australia and the rest of the world. So while we work on our self-isolation best practices, what are the steps we can take to achieve a sense of financial security in a pandemic?

Find out what government support applies to you

The Australian Government is currently providing financial assistance to Australians during this uncertain time. The assistance includes income support, household support and temporary early releases of superannuation. All the important details can be found here.

Be sure to also look at your state government and find out what packages and recovery efforts apply to you.

South Australia: The SA government has unveiled a $1 billion jobs stimulus package. Keep an eye on media releases and updates here.

Tasmania: The Tasmanian Liberal Government has prepared a $420 million stimulus package to support Tasmania. Keep an eye on media releases and updates here.

ACT: The ACT Government has prepared an economic support package of $137 million. Keep an eye on media releases and updates here.

Northern Territory: The Territory Labor Government’s $65 million Jobs Rescue & Recovery Plan has been introduced to keep shops open, cash flowing and Territorians working. Keep an eye on media releases and updates here.

Western Australia: The WA State Government announced a $607 million stimulus package to support WA households, pensioners and small businesses in the wake of COVID-19. Keep an eye on updates here.

Queensland: The Queensland Government has announced a $4 billion COVID-19 package to support Queenslanders’ health, jobs and businesses. Keep an eye on updates here.

Victoria: The Victorian Government has announced a $1.7 billion economic survival and jobs package to support small and medium sized businesses in Victoria. Keep an eye on updates here.

Write up a budget plan

If ever there were a time to start being conservative with your funds, now would be it. You’ll feel an alleviating sense of financial security in a pandemic if you can stick to a well-curated budget. Remember, the ever-changing economic climate brings all kinds of financial stress, so you’ll want to keep updated on what’s happening and budget around that.

Accept the current state of affairs and do what you can to work around it. Try to avoid spending as if everything is normal in the world. Evolve and adapt your spending to suit the current climate. That being said, please don’t panic buy.

Panic buying goes against the idea of budgeting for a pandemic. You might find yourself buying excess of what is necessary, being left with little funds to support other areas in need. Excessive stockpiling can also lead to price gouging, which is when the prices of certain supermarket items double or triple in price. None of us want to pay $20 for toilet roll.

Pay attention to budgetary changes

Now that you are in self-isolation, you will notice certain expenses disappearing and others rising. As you won’t be leaving the house, you will no longer be paying for petrol or for drinks or a night out. You will, however, be using electricity and water at home a lot more. Consider these variables and tailor your spending habits around them. You will need to pay close attention to what money goes where as it will be different to your routine money management system.

Carefully consider a loan

Australian Lending Centre is a leading provider of bad credit loans and consolidation loans Australia-wide. We strive to assist people who have multiple credit cards and personal loans. With the introduction of the coronavirus, we understand finances are tighter than ever. ALC can lend a helping hand. We offer a wide range of financial services and can provide a product to match your individual needs. From debt consolidation and debt management, to credit repair and low doc loans, ALC can help. Get started on your loan application here.

Look after your mental health and well-being

It may be the last on our list, but it is indisputably the most important. A healthy mental state is vital to feeling a sense of financial security in a pandemic. If you feel mentally on top of things, the finances will follow.

Avoid Fake News and Sensationalised Media

One of our top tips would be to avoid fear-inducing media if you find yourself inclined to anxiety. Although we have addressed keeping up to date with the latest pandemic news, this doesn’t mean delving deep into conspiracy theories and reading about all the tragedies. Have an understanding and be aware. Just don’t spend all your time consumed by COVID-19 news.

Stay Busy and Engaged

Try to keep yourself occupied with hobbies. Read a book. Go for a jog. Clean the house or learn a new recipe. Being homebound doesn’t have to mean being bored out of your brain. It certainly doesn’t mean sink into the couch and rotate through Netflix series’ all day.

Seek Support

Finally, seek support if you’re feeling helpless. Beyond Blue has a dedicated page on its forums to help those who are experiencing mental health depreciation due to the current global crisis. You can contact the Australian Government Department of Health on their national helpline (1800 020 080) for information on the pandemic. There will always be people you can speak to and people who can help.

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News Business Loans Financial Planning Short Term Business Loans Short Term Loans

Emergency Business Loans – Risk vs Reward

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

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Financial Planning Debt Management

Budgeting Tips – Learn How to Manage Your Finances

There are many benefits that come with budgeting. Creating a budget is something that everyone can do. It doesn’t matter how much you earn, what expenses you have, or which stage you are at in life. They can be created specifically for your needs. In this blog, we share budgeting tips to help you to manage your finances, but first, here are some reasons you might be considering a budget:

Set and meet a savings goal

Have a big trip on the horizon? Looking into high schools for your kids? There are plenty of expenses in life that add up fast, and creating a budget is a great way to work towards them. You may even have a bigger goal in mind, such as buying your first home. Every little bit counts and budgeting will help get you closer.

Overview of your finances

You may think you are spending wisely, but often on closer inspection of where your money is going, you may discover otherwise. Often we spend blindly, thinking we are keeping track, but when we add up the numbers, it can be a shock. Creating a budget lets you see exactly where your money is going and what you are spending it on.

Improve your spending

Finally, with a budget, you can improve your spending. You don’t have to cut out the luxuries, but rather just look at cutting down in places to help you add more money to savings instead.

No matter which reason applies to you, creating a budget is a practical solution. It puts you in charge of your finances. Here are some great budgeting tips to help.

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Budgeting Tips – Manage Your Finances

Start with the Past

This may sound draining, but it really is the best way to do it. It’s best to go back about a year, so you get a full overview of all your expenses. This might include insurance and other bills that come at different stages throughout the year.

Print out your statements and run through them with different coloured highlighters. For example, use yellow for household expenses, green for car expenses and orange for entertainment. Just being able to see this at a glance will give you a good indication of where your money is going each year. And remember, a budget isn’t about cutting out bad spending. It is about being aware of where you money is going and cutting down on areas. Maybe you didn’t realise you went out so much?

Set Achievable Goals

Look at where you are and where you want to be. There is no point cutting out all entertainment expenses, just to buckle down and save. This just isn’t realistic and you will end up slipping up, which will put you back at square one. Instead, set goals you can achieve, and always allow for ‘anonymous’ expenses, such as a couple of dollars for the cake stand at school. You need a bit of leeway for these small expenses that can add up.

Open a Savings Account

Now you have a goal in mind, make sure you have a savings account set up. The most important thing when it comes to your savings account is to ensure you are earning interest on the money. Opt for an account that has a good interest return, after all this is easy money in your pocket that will give your savings a good boost.

Use cash

By using cash instead of your credit card or bank card, you will become much more aware of your spending and less likely to overspend. This is one of the best budgeting tips out there. Take out a certain amount each week and watch where it is going – don’t let yourself spend beyond this. It is so easy to tap away on a card and not even consider where your money is disappearing too.

Ring all your providers

Another one of those golden budgeting tips. This one can be time-consuming, but it is so worth it. Ring around all your providers, mobile phone, internet, insurances, etc., and look for a better deal. Often all you have to do is ask, especially if you have been with them for a while.

Stick to It

Don’t let yourself go, as bad habits will come back really quickly if you find yourself giving up. If you have the odd slip-up, that’s fine, get back on track and go again. And if you are finding it is just too hard, this may mean you need to take a look at your goals and readjust them to make them more achievable. It’s all too easy to feel like a failure if you can’t meet your goals. However, if this is the case, it is more likely that your initial goals just weren’t achievable. Budgeting apps can be useful if you are struggling to budget yourself. Money Brilliant is one of the budgeting apps available in Australia.shutterstock 1120539272 Budgeting takes hard work and perseverance, but the results speak for themselves. Use these budgeting tips to help you to manage your finances and soon you’ll be in a good position to reach your savings goals. If you need a bit of extra help managing your money, get in contact.

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Debt Management Financial Planning Personal Loans

Dos and Don’ts of Getting a Loan on Centrelink

It’s true that when it comes to taking out a loan, lenders will assess your earnings as a part of the application process. If you are relying on Centrelink payments, it can make it a harder process. But there are other factors involved as well. This means that depending on your situation, you’ll still be able to take out a loan if you need it.

Getting a Loan on Centrelink

Wondering what the process is and how you can go about getting a loan on Centrelink? You’re not the only one. We have set up a clear list of dos and don’ts for you to follow when it comes to getting a loan whilst receiving Centrelink payments.

Check Which Benefit You Are On

For some lenders, Centrelink benefits can count as income. This means your chances of taking out a loan can be higher. This typically doesn’t apply to all payment types. For example: Youth Allowance, Newstart and Austudy are unlikely to be accepted as part of your income. Why? Because they are temporary payments. If your circumstances change, you will no longer be eligible to claim them.

The first step is to work out what benefit you are on. Next, you should calculate how much this benefit contributes to your income. Providing this information to your lender upfront will make it quick and easy to determine what you are eligible for when it comes to taking out a loan.

Don’t Focus On One Lender

Just like taking out a regular loan, it is important to shop around. Of course, you want to do this without it affecting your credit score. The trick is to do it in the space of a couple of weeks. This way, it will only count as one hard inquiry instead of multiple.

Take a look at different interest rates on offer to ensure you are getting the best deal. You can even shop between traditional (banks) and non-traditional lenders to find what works for you. There is no one-size-fits-all when it comes to taking out a loan. Therefore, it is important to do your research and shop around to get the best deal.

Do Look For Lenders That Work With Centrelink

Shopping around is important. However, it is even better if you can find lenders that state ‘Centrelink Accepted’ on their website. Of course, if you can’t find this straight up, it doesn’t automatically mean they won’t accept Government benefits as a payment. The next step is to call them up and chat directly to ask them. Many lenders will be upfront about their policies. Meaning they will communicate whether they accept Centrelink payments as a form of income when taking out a loan.

Don’t Borrow Above Your Means

Being on Centrelink payments already, you don’t want to borrow above your means. This can mean finding yourself unable to pay off the debt. It can actually end up quite expensive borrowing small amounts of money – and it won’t solve your problems. All loans come with interest, so if you are unable to pay them back in a timely manner, you will be left with increasing interest over time.

Do Look At The Types Of Loans Available

Personal loans aren’t the only types of loans available to you while you are on Centrelink. You can also look at what other loans you might qualify for. This way, you can ensure you are on the best loan for your needs.

Centrelink Advance Payment

Depending on what type of benefit you are on, you may qualify for a Centrelink advance payment. Usually these need to be repaid within six months, or they will be subtracted from the amount Centrelink pays you.

Payday Loan

Finding a lender who accepts Centrelink as an income means you are eligible for a payday loan. These are small loans that tide you over until your next payday (or Centrelink pay).

Car loan

You can also take out a car loan. Your payments are used as a security for your loan, which can offer your lower interest rates.

Don’t Limit Yourself

Just because you are receiving Centrelink, doesn’t mean you are limited in your options when it comes to taking out a loan. All it means is that you need to shop around and find the right lender for you and your needs.

Loans On Centrelink

Getting a loan on Centrelink is very possible, especially if you follow this guide of dos and don’ts. If you are looking for a lender who can help you out, check out Australian Lending Centre. With our expert advice, you will be back on your feet again in no time. Finding a loan when you are on Centrelink can be simple, as long as you know the right process involved and get the right advice.

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Financial Planning

10 Financial Habits That Will Enrich Your Life

Financial freedom is not impossible; as a matter of fact its very achievable. All that is requires is smart long term financial habits.

Check out some of the best financial habits that will enrich your life.

50/30/20 Budgeting Rule

To control your finances, you must possess good financial habits. You can’t be a good budgeter if you don’t know where your money goes. The 50/30/20 budgeting rule is a good platform to help you get started. Track your spending to know the areas of excess expenditure. If you order Uber Eats too much, cut down on the home-delivered takeaway. If your credit card debt is high, consider debt consolidation. By following the budgeting rule, you can save more money.

Use financial management apps

Tap into a whole range of financial management apps. These useful apps can help you manage your finances and keep you on the right track to financial success.

Don’t use Buy Now Pay Later Services

Avoid Afterpay and Zip pay at all costs. If you don’t have the funds for whatever you want to purchase, wait till you do. It’s more than likely that you are shopping for a want; rather than a need.

Pay Your Bills Promptly

A desire to be in full control of your finances means that you have to manage your bills ahead of time. Late bills payment is a feature bound to stretch your paycheck frequently. So, here is what to do, pay your bills on time. If you have credit card bills, pay it before the interest accrues. That makes you save some cash, right? Let’s get rolling!

Avoid Credit Cards

When making purchases, pay using cash or your debit card. If you can manage this habit, do not use a credit card. You will spend less money when paying upfront compared to a credit card, which will have balances and extra fees as well. Avoid credit purchases if you can make the right decisions with real money while checking out.

Be Debt Free

Debts can drag you to your deathbed. It can anchor all your tragedies if not well checked. Come out of this menace. Start by minimizing your spending. Make a plan to eliminate your debts until you become debt-free!

Be fit

Staying fit is an enriching habit that can influence all aspects of your life. Whether it’s going for a walk, cycling or yoga, find what works for you. Keeping fit can help you clear your mind. A clear and open mind means better financial decisions. It a win-win really.

Have a side Hustle

Whilst a side hustle means more work and dedication, it also means more of an opportunity to set yourself up financially. Consider starting an e-commerce website, take up uber delivery, freelance on upwork or complete a task on air tasker. There are endless possibilities to make additional income.

Invest

There is no point in saving without making any investment. It’s useless swimming in cash shoved under your mattress. Make a point of making investments and be sure of getting some good returns.

Have Realistic Goals

You need to have goals, short-term or long-term. If you have unwavering lifetime goals, take a step, and accomplish the goals. Many people tend to save for emergencies or retirement. However, less understand that you can save for specific goals. You can save money for your child’s education, your dream car, or do your dream home. You will only achieve your goals if you are a determined, resilient, and hard worker.

Incorporating these simple habits are steering to your financial freedom. Enrich your life fully by only doing such practices and have a good financial habit.

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Financial Planning

Financial Planning For New Families

Making the decision to start a family is both exciting and daunting. There’s so much to think about in terms of caring for a whole new little person in your lives, as well as setting yourselves up financially to ensure you can take the time off work you need and meet all the expenses that come with bringing a baby into your family.

Many couples put off starting a family until they are financially stable. But this idea of being financially comfortable is different for everyone, and for some, it would mean putting off a family for years and years, which isn’t always ideal. Here are some ways you can plan for a new baby and see whether you are ready to take the leap.

What Is Family Financial Planning?

  • The idea is simple. It’s about taking a look at where you stand financially, and seeing how things might change once you have a baby together. Here are some things to look at:
  • How much time you or your partner might take off work once the baby is here.
  • What your joint household income will drop to with this time off.
  • Cost of big-ticket items for the baby, such as car seat, pram, etc.
  • Cost of daycare once you do go back to work and how this affects your bring home pay.
  • Cost of weekly expenses, such as nappies, wipes, formula, that need to be factored into the new family budget.
  • What sort of pregnancy care you are looking at. Are you wanting to go private? Consider the cost of ultrasounds, obstetricians, etc.

How To Financially Prepare For Starting A Family

Here are some steps you can take to ensure you are in the best financial position possible when it comes to welcoming a new baby into your home:

Build Up Savings

This is often easier said than done. Simply start putting away a little bit each week into savings, no matter how small that amount is. You have to start somewhere. Over time, you may be able to increase this amount, but if not, at least you are putting something away.

Don’t Overspend

It is so easy to go just a little crazy with all the baby products out there, but it’s important to realise you don’t need the most expensive product each and every time. In fact, it’s worth jumping on Facebook marketplace and having a look at second-hand items on there. Lots of baby items only get used a handful of times and are in great condition to purchase second hand. You can save so much money on them as well.

Budget

Take a look at where you are right now and how much this might change when you bring a baby into the family. Factor in all these potential costs and look at how you might be able to make ends meet. Are there areas you can cut down on? Can you start cutting down on them before the baby comes?

Research Your Entitlements

Check out what money you may be entitled to either from your workplace, your partner’s workplace, or the Government. Many people aren’t aware of the benefits offered, such as maternity leave from both work and the government, paternity leave and family tax benefits that you may be eligible for. Look into all of these before you start your family, so you know what you can apply for, can do it straight away and factor this into your budgeting.

Prioritise Your Debts

If you have any outstanding debts you are in the process of paying back, prioritise these and reduce them as much as possible before the arrival of a new baby. In fact, preparing for a new baby is the perfect time to take a good look at all your finances and see that you are getting the best deal possible. Here are areas to consider:

  • Are you getting a good deal on your credit cards? Could you shop around and find better?
  • Are you getting the best deal on your phone contract? Do you research and see if there are better plans more suited to your needs?
  • Look into your insurances and check that you have the level cover you need.

Remember That Money Isn’t Everything

Welcoming a new addition into your family is an exciting time, so don’t let your finances overwhelm you. While there are plenty of things you can do to make sure you are in the best place financially, don’t forget to enjoy the time and every minute that comes with it. You will blink, and your kids will be moving out of home and starting families of their own!

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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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Financial Planning

Save Money With The 50/30/20 Budgeting Rule

Do you find yourself asking, how much money should I save? If you are already aware of your spending habits, then a budgeting plan can help you tighten your strategy and help you focus on the road ahead. The 50/30/20 budgeting rule was created by Harvard bankruptcy professor and Senator, Elizabeth Warren. In her book titled “All Your Worth: The Ultimate Lifetime Money Plan”, Warren discusses the idea of a 50/30/20 rule to help manage your budget.

The 50/30/20 budgeting rule is designed to help you organise your finances and start saving.

After-tax income.

The first step is to calculate your after-tax income. This is the amount of money that you receive on your payslip after your tax has been taken out. If you have a regular income this is extremely simple to calculate. Your payslip will outline the amount.

If you are however self-employed, your after-tax income will equate to your gross income minus any business expenses. This includes money set aside for tax repayments.

Needs

Once you have established you’re after-tax income, it is important to assess how much you are spending on your “needs” per month. To help you understand what a need is, think about the bills that you must pay each month. These bills are crucial for survival. Without these bills, it will be extremely difficult to live and work.

Some common needs include groceries, home and utility bills, transport and automotive bills, debt payments and medicine. A need does not include items such as eating out, Foxtel or your Spotify subscription. A budgeting calculator can help you go through each of these needs. It will also calculate the total amount that you are spending per month.

Wants

Do you need a new pair of runners? How about 2 week trip to Italy? Or maybe you just want to enjoy a 10-course degustation. Remember these are not defined as needs.

Your wants are just that, things you spend money on, but are not absolutely necessary. A want may include ordering uber eats, going bowling or buying those fancy runners. Wants include lifestyle upgrades. For example, you own a 10-year-old Toyota Corolla that works fine, but you are thinking of upgrading to a Mercedes.

Allocating 30% of your income to your wants may seem easy on the surface, but it requires a high level of self-discipline.  A want drives enjoyment. A want entertains you and sometimes this need for pleasure and entertainment may outweigh the need to save money. It is for this reason that saving becomes a mental struggle.

Savings

According to Warrens 50/30/20 rule of thumb, you should spend at least 20% of your after-tax income on savings. This includes allocating money into your savings accounts, paying off debt and keeping an emergency fund in place.

The minimum payment that you allocate towards repaying your debt is also considered a need. This is not included in the 20% savings. If you are saving well, you can consider making extra contributions to credit cards, mortgages or even car finance. Start by quickly paying off any high-interest debt and then move towards lower interest debt. Remember that extra contributions are part of your 20% savings contribution.

Calculate your 50/30/20 budget.

Use our handy calculator to see how much money you need to be saving each month. Simply enter your after-tax income to get started.

Is saving 20% of your income enough?

Whist Warrens 50/30/20 rule of thumb is a great tool to get you started with budgeting, it may not be an exact guide for everyone. Your financial situation plays a large part in whether 20% of savings is really enough.

Gary

As a low-income earner, Gary still has many responsibilities. He has to pay weekly rent, top-up his opal fees and purchase groceries. At the same time, he still needs to enjoy himself. Gary likes to eat out and visit museums. As a low-income earner, a 20% saving per month is quite difficult but it is manageable.

Susanne

Susanne, on the other hand, is a high-income earner. She has her own property and pays the mortgage. Susanne is single and has a range of needs that she must pay each month. These, however, do not cost anywhere near $6,600. After inputting her needs into a budget planner, she realised that she is only spending $3600 per month. This already includes her minimum debt repayments. Besides her interest in travel and video games, she does not really splurge. As such her wants are only at $2400 per month. In Susanne’s case, she would rather put the unused $4,200 towards her savings so that she can quickly pay off her mortgage.

The bottom line

As you can see, the 50/30/20 rule of thumb is a great tool for setting a budget, but it may not be entirely useful for every person. As a budgeting tool, it is helpful in building the foundation for budgeting. Chances are that if you are reading this article, you are already thinking about budgeting. Now, all that you need to do is calculate your budget and stick to it.

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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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Bad Credit Loans Financial Planning

The Budget Friendly Guide to Moving House Using A Bad Credit Loan

Stay on schedule, use your moving house bad credit loan wisely, without last minute headaches, using the tips below.

Visit the new house to check for maintenance issues

When checking up on your new house for the first time, you need to check if there are things that might need repairs, or even just the slightest bit of improvement. Electricity and water should be available in your new home. Cable and internet should also be installed. There may be some flaws that you previously overlooked in the new house, so check them properly, and don’t spare a corner from being evaluated. If you want to change up things inside your kitchen, do as you please. Make sure that it’s more practical than it is luxurious; the same goes for the living room, bathroom, and bedroom repairs. Moving is already costly, but adding up to the expenses may cause you major financial problems, you could always make the expensive renovations once you’ve already settled in.

Assess the accessibility of your new house to the market, school, and public areas

When moving to a new house, getting used to the new surroundings may may involve adapting to a new routine. For instance, in your old home, the grocery store may have been 500 metres away, however, due to your location change; the supermarket might be closer to you now.

You might encounter difficulties when it comes to your childrens’ school (if you have children). Choosing a new school that is near your house will be beneficial to you for a number of reasons. You won’t be spend as much on fuel if you drive the kids to and from school. Maybe a closer school could mean the kids can walk to school instead.

Consider your public transport options

Accessibility to quality public transport can be one of the benefits of moving house. The bus stop that was two blocks away before,  could now be a five minute walk from your doorstep. Things might be easier for you if you choose the right home in the right location.

Hire a reliable and ethical moving company:

To make the most of your moving house bad credit loan you may need to use a removalist company.  Here are some tips to do it right:

  • Ask around for recommendations. Finding the right company to help you when moving can be quite hard. Consider word-of-mouth suggestions when looking for one. Despite their suggestions and the advice that they have given you, you yourself should make sure that the movers are of a high standard and that the costs are accurate and affordable with no hidden extras.
  • Make a list of the items to be moved. Make sure that you are clear with the service company. Create a list of the right arrangements in advance, to ensure both parties are aware of exactly what needs to be moved.

Be financially ready when you move house

Being financially ready should be number one on your priority list. Moving can be very costly and you’ll need a substantial amount of money to pay for everything. You might want to consider a moving house bad credit loan if you are short of cash. Make sure that you are offered the best available interest rate and fees.

If you want to learn more about our bad credit loans contact Australian Lending Centre today! We compassionately take you through the application process and discuss the terms and conditions of affordable, low-interest loans to help you over the difficult period of moving.

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Financial Planning

How To Create A Retirement Spending Plan

Learn how debtor finance can help you find retirement money and build its sources. A strong retirement spending plan can help you to enjoy the life you have worked so hard to build.

If you want to create a retirement spending plan, make sure that your expenses are lower than your income. But, if you have troubles in making ends meet, how will you do it? Good thing debtor refinance can help.

Retirement is something that you buy, that’s a fact, whether you agree with it or not. It’s a plan on how you plan to spend your retirement income. But how do you intend to spend money that does not exist?

Here are simple yet effective tricks to create a retirement spending plan when you have limited resources:

Add up your income

Everything that adds up to your wealth is considered an asset, including consistent income, but not those earnings that are not definite. For example, while you can expect tips as a waiter on a daily basis, you cannot count on them so instead of writing down the total tips you received in a month, just get the average tips. Here are common sources of income that you can include in the list:

  • average tips
  • alimony payments
  • bonuses
  • investment income
  • wages

Track down your expenses

Okay, you probably heard about budgeting a lot, and maybe you’re already fed up with the tips that budgeting is crucial to retirement savings. But, it’s a hard reality that we can’t do anything about.Include everything you spend for. When you add up monthly expenses make sure to include your average food bills, transportation, clothing, entertainment and utility bills. It is also important to take in your credit card payments, loan repayments and if you have a mortgage and auto loan payments, write them down.

Calculate the average expenses you incur each month

Even those things that you seldom buy, such as:

Household items, minor house repairs and clothes

For example, if you buy clothes every three months, get the average cost of the clothes and allot them in your monthly budget.

Don’t forget the add-ons

If you’re paying for self-employment taxes, business taxes and insurance, put them in the expenses list. You can also collect receipts, get a copy of your credit report and track how you spend your cash and borrowed money each month.

Review your debt and credit card statements

If possible, make it a habit to review your debit card records as well as your checking accounts. A lot of people have been surprised how much their money ‘vanishes’ each month, but they’re more stunned by how they spend it.

‘Pay’ your savings account

You only have two options, consider your savings as a top expense you can’t live without, or a debt that you have to pay for a very high interest. You’ll thank yourself later, especially when you’re too old to work.

Here are some barriers to creating a retirement spending plan:

Retirement is not something that people really look forward to

A lot of people have troubles saving for their retirement income. It’s because many people are not really looking forward to old age – the days and years where they will no longer feel in control of their finances. Who is excited to stay in a retirement home? But, if you change your perspective and consider retirement as a adventure, a new beginning that can give your life a new meaning, then it will be an exciting event that you will work hard for.

With a retirement spending plan here’s never ‘enough’ money to save

You have goals and you really want to put away the money for them. But, you have lots of expenses, despite a stiff budget. If that’s the case, why don’t you set up an automatic savings plan? This way, your money will be automatically withdrawn from your checking account and deposited in your retirement plan, savings account or investment accounts. While you can deposit the retirement savings yourself, automation will ensure that you won’t miss doing so. If possible, put all your bonuses, raises and tips to your savings accounts. Make it a habit to reduce your expenses and set aside money for the future.

You can also revisit your retirement spending plan once and a while to adjust to income changes and other conditions that may require additional expenses such as: illness, job loss and other money-related concerns.

Take advantage of the power of compounding interest

If you want to make your small investments large enough to cover your retirement expenses, it’s time to consider investments with compounding interest.

Any amount of money you put into real estate, bonds, stocks, cash savings, or a mixture of these financial portfolio, will work for you, given enough time. The interest on the money you invested and the accumulated interests will eventually increase the size of your savings account. The longer you invest, the bigger the pool of money for your retirement.

Do you need help in obtaining debtor finance so you can save for retirement? Talk to our trustworthy loan experts at Australian Lending Centre. Enquire now!

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Financial Planning

Tips to Manage Financial Challenges

If you are in a difficult situation facing financial challenges, learning how to properly use loans, for bad credit applicants, can help.

Do you have a steady source of income which covers not only your needs but also your wants as well? If you’re one of the thousands of Australians who want secure finances but are also dealing with financial issues, you may be wondering how you can achieve that reality.

What Are Your Financial Challenges?

Like many individuals in serious debt, you are probably worried about trying to pay for your daily living expenses and outstanding debts, while wishing to buy a home, a car and probably take a vacation. If so, don’t ever think that you’re alone in this aspect. There are also many struggling parents who need to save for your children’s education while paying off debts and adults with elderly parents to support. And, things get worse when you are going through a divorce, dealing with a death in your family or probably looking for a substitute job for the one you recently lost.

The truth is that there are many events in life that test not only our ability to cope financially but to think positively and overcome these trials with a smile.

Use your financing options to manage these financial challenges

Learn how to take control of your finances, boost your borrowing power and secure a better financial life with the following tips:

Write down each of your goals

Are you really determined to pay off all your high-interest loans? Or do you just need to have a better credit rating so you can borrow even more? Sometimes, we don’t actually know what we want. We just keep on looking for solutions to our immediate problems without looking into their root cause.

For example, if you have $5,000 worth of debts, both in consumer credits and loans, do you trace back to the causes of those purchases? Or, do you simply skip the reflection aspect and look for better financing that could lower your interests so you can have more money to spend on your needs and wants?

While there is nothing wrong in looking for better deals, such as low-interest and easy to pay bad credit loans. Finding the root of the problem in your finances can help you make better decisions with regard to budgeting and balancing your sources of revenue.

Swap the present wants for future needs

Are you spending a few hundred dollars on things you can live without—such as a gym membership, magazine subscription and a trip to your favourite coffee shop? If so, think of how you could use the money to build wealth, like starting a retirement plan to secure your finances in later years.

The sooner you start saving for retirement, the more financially secure you can be when you finally stop working. These contributions are typically tax-deductible, so aside from getting a tax credit for starting a retirement plan, you can also grow your money faster because savings grow faster in a retirement plan as a result of tax-free compounding.  In the end, even small contributions can make a significant difference over time.

Diversify your investments

Do you know how to protect yourself against ignorance? Warren Buffet says that it is through ‘diversification’. Since you’re not really sure if an investment will appreciate over time, you should diversify your portfolio to ensure that your exposure to any individual asset is limited.

What are the asset classes that you currently hold?

Are you involved in alternative investments like real estate, or are you simply invested in stocks or bonds?

Instead of chasing performance for a single investment class why don’t you add a good mix of real estate, cash, bonds and stocks in your egg basket? This way, you can protect your financial portfolio from wreaking havoc when the market declines. If you put more than 15% of your money into a company’s stock, you may be heading for disaster. While you may not be thinking of the worst-case scenario, preparing for these things can help you when you lose your job and your other sources of income. Losing your investments as well, all at once is not an easy crash to bounce from.

Grow your wealth

One of the most important benefits of bad credit loans is that you can use it for wealth maximisation. Create a long-term investment strategy that requires adjustment in your personal budgeting and your appetite for risk. This helps to ensure that no major market glitch will pull your finances down. You never know what will happen tomorrow, but one thing is for sure… life goes on and with the right mindset and professional help, you can enjoy a comfortable and financially stable lifestyle.

Contact the Australian Lending Centre today and receive financial advice from our specialist loans team.

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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.

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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.

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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
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.

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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.

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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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Personal Loans Business Loans Financial Planning Short Term Loans

Top Methods of Getting Personal Loans from Private Lenders

Every individual or family may need personal loans from time to time. It may be for various reasons: the car broke down, the house needs some renovations, or their daughter is planning to get married in Spring. Regardless of the reason, money is needed as fast as possible.

The problem is that options such as credit card debt or bank loans aren’t always available. Once more, reasons may vary. It may be because you built up too much bad credit or you have no collateral to attach to the loan.

In these cases, a personal loan from a private lender may look like a very good option. They are fast, easy to access, and may overall improve your financial situation. And this article will tell you the top methods of getting a personal loan from a private lender.

#1: Figure Out If a Private Personal Loan is Your Best Option

Before going for personal loans, you need to learn the difference between public lenders and private ones. For one, private lenders aren’t banks, credit unions or financial institutions. They are simply individuals (or companies) with no attachments to a certain institution that lends money to other people. Those who receive a loan from a private lender usually have a certain relationship based on trust.

A personal loan taken from a private lender is different from other types of private loans, in the sense that you don’t need to specify why you need a loan. On the other hand, public lenders will categorise the loan based on your needs: student loans, car loans, mortgage loans, etc.

Keep in mind that personal loans are very different from payday loans. A payday loan will have to be paid very fast – usually within the first two weeks – and they carry a very high interest rate. A private personal loan will have a longer time frame and a lower interest rate – but will still be higher than the one offered by a bank.

There are also risks to personal loans from private lenders, such as shorter payback periods or costly fees. Most will require collateral to secure the loan. If by any chance, you find yourself unable to pay the loan, the lender will be entitled to sell that property to get his money back.

#2: Consider the Alternatives

The most important part of getting a personal loan from a private lender is knowing that there are other options aside from them. If the return of your purchase makes your loan worthwhile, then getting personal loans from a private lender might not be such a bad idea.

Still, before going for a personal loan, you may want to check whether you can use cash to fund that purchase or not (or at least some of it). This may reduce the costs in interest, resulting in a much smaller loan.

You may also want to evaluate all your alternatives. Consider opening a line of credit, or getting a public student loan. If the interest rate is more beneficial for you, there’s no reason for you to take out personal loans. Only do so once you’ve burned out all the other options and know for sure this is your best opportunity.

#3: Access Your Options for Personal Loans

When opting for personal loans from a private lender, you need to do your research on the options that they provide. You may want to focus on lenders that are accredited or have been approved by the government.

You can go for individual lenders or companies. Browse through your options, and see which one is a better way to start. After learning of all the options, you may settle on the one you believe is more convenient for you.

You should also try contacting your family, friends, or business acquaintances. They may be able to offer you a personal loan quickly, with a smaller interest rate. Still, you may want to make sure that there is also a written agreement next to your verbal one. And you should keep in mind that failure to repay this loan can result in damaging your relationship with your lender.

Once you have explored all of your options, collect all the documentation that you need. You need to appear as creditworthy as you can. Show your income sources, your savings, or any physical assets that you use to secure your debt.

Final Thoughts

Personal loans from private lenders can be tricky to deal with – but they are also convenient if bank loans are not an option for you. All you need to do is research your options and come up with a convenient provider. Contact us for a free assessment that has no effect on your credit file and get one step closer to a suitable personal loan.

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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.

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News Financial Planning Personal Loans

Private Lenders: An Alternative Source of Financing

Whenever Aussies need a loan to finance a new car or house they go to the bank. Still, they seem to forget that there are also alternative sources of financing in the form of private lending. But what are private lenders and why should someone consider these alternative sources of financing when there are plenty of banks?

Sometimes, traditional banks don’t always approve your loan application due to many different reasons, so people have to look for alternative sources. With a private lender, maybe you will finally get that new car you have always wanted.

What Are Private Lenders?

They can be either an organisation or a private individual. Unlike traditional funding sources, like banks, private lenders don’t have traditional qualifying systems, meaning that getting access to a loan is much easier.

However, because of its “different” nature of funding, lenders come with higher risks for both the borrower and the lender.

What Are the Benefits?

To begin with, private lenders can easily approve your request for a loan. In other words, if you have bad credit or are self-employed or cannot provide proof of your income, a private lender may be more accessible when it comes to requirements. So, no matter your income and your credit score, a private lender will get you the loan you need.

Another reason for applying for private funding is due to the straightforward process they have. Unlike traditional lenders, the private ones will accept your request very fast. Not only that, but your loan could be available right after your application is approved. This can bring a lot of advantages if you are on a tight schedule.

drawbacks

Drawbacks of Using Private Lenders

It almost sounds too good to be true, but private lenders do come with a set of drawbacks that can make them inaccessible to some Aussies.

The first thing to know is that their rates are typically higher than those of traditional lenders. This is how they compensate for the increased risk and they will have high interest rates for those with bad credit.

Some lenders may feature high fees, from the start until the finish of the loan term. In any case, be sure that you know what you are paying for.

Another drawback is that some loans are offered for shorter terms in comparison to what traditional lenders offer. This happens especially when it comes to mortgages. When conventional mortgages have a twenty-five to thirty year terms, private lenders offer smaller mortgages that just fill the gap until securing more traditional finance.

The private mortgages can also be used to cover needs like the construction of a house. They can also cover for the period between purchasing a house and selling one. The term on these mortgages is one or two years, which means that you will have to move fast to pay the loan back.

Another thing you should know about private lenders and their services is that some of them do not offer the same features as traditional lenders do. In other words, some loans may lack features such as redraw facilities or offset accounts. So, if you were hoping for these types of features, you might have a problem.

How Can Private Lenders Help Me?

Private lenders can offer you a lot of options when it comes to loans. Here are a couple of them:

  • Caveat loans are fast-settling loans secured against a property. These loans are short, last sixty to ninety days and settle very quickly.
  • Bad credit loans are the ones you need if you have a low credit score. Be careful though; these loans come with high interest rates, so use the money wisely and make sure you pay back the loan fast.
  • Bridging loans can be offered by private lenders and can be used by the customer to build or purchase a new home before the sale of their old home. These loans have a term of twelve months, and they are paid back when the old property is sold, making them quite useful in the long run.
  • Second mortgages are also offered by private lenders. These loans are available for those who already have a mortgage on a property who are in need of extra funds for multiple reasons. Depending on the lender and the loan terms, these loans could have high interest rates and extra fees. With all these factors in mind, any client should think twice before applying for this kind of service. So be very careful if you do.

Conclusion

Private lenders are here to stay, whether you like it or not. They have a lot of advantages in comparison to traditional lending systems, but they also have some drawbacks. At Australian Lending Centre, we offer second mortgages at competitive rates and flexible repayment terms that can be catered to your specific needs. Contact us today for a free assessment via our enquiry form now!

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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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Financial Planning

How Quick Loans Can Help You Take Control Of Your Finances

If debt is a pervasive part of your life, and every now and then you are looking for quick loans, you are not alone. But, don’t you know that you can find your way back to a stable financial ground with good planning and a little bit of work? Learn how quick loans can help you take control of your finances.

People are in debt because…

There are many reasons why people get into debt. Some simply had to use it to deal with bad circumstances such as illness, accidents, divorce, and other financial setbacks; while others simply lack financial management skills and budgeting strategies.

Current stats on Australian debt:

Federal Reserve research shows that Australian households have a total of $2 trillion unconsolidated household debt. But, despite the increasing financial obligations, consumer spending in Australia increased to 23.8 AUD Million from July to September 2016. It is roughly a million higher than the 23.7 AUD Million consumers spending in the second quarter of the same year. These results could mean that household debt and consumer debt are increasing, as more people are willing to apply for loans, credit cards and mortgages.

So, how do you prevent debts from cutting into your paychecks? Well, you can increase your income, practice money-management tips and use quick loans to cover your immediate financial needs while working on it.

Strategies to help you take control of your finances

Make a workable budget that you can stick to:

You can start by jotting down your most urgent expenses and the overall cost of all other things you will use the money for.

  • Prioritize spending. You may be surprised that the thing you think you need most, is not even worth it.
  • Don’t forget to write down even the frivolous purchases
  • Keep track of your daily expenses, such as fare, coffee, food and other necessities
  • Check for alternatives. Can you pack lunch instead of buying take-out meals?
  • Set your financial goals. There’s a huge difference between financial dreams and financial goals. A dream is what you hope for, while a goal is something you planned to achieve. You plan it to make it happen. You don’t dream about it and allow things to flow in its natural course. Financial goals require action. You take an active part in its realization.

Create a list of the following:

  • Things you want to accomplish
  • The resources you will use to achieve them
  • Time frame
  • Cost
  • Action plan. Make sure that your plan will work considering your budget.
  • Repay your quick loans on time. When does the repayment date start? Include the date in your action plan. When you have a deadline to beat, you will have enough motivation to make yourself productive until it happens.

Do you need quick loans now? Where will you spend it on? Whatever is your reason in applying for a loan, the Australian Lending Centre is here to help you. If we helped thousands of Australians deal with their financial troubles, why can’t we do it for you? Call us now!

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Debt Consolidation Financial Planning News

How to Manage Your Money like a Millionaire

How do millionaires make their money, especially when they’re so young? And just as important, how on earth do they manage it? What are their secrets, and can we learn from the methods that they apply?

Well, Capgemini Consulting made it a little easier for us with the report in which they reveal young millionaire money management methods. Do you want to know how to manage your money like an under-40 millionaire? Then keep reading for some valuable tips.

Manage Your Money like a Millionaire

Socially responsible investing

Do you think millionaires invest all willy-nilly? They do not, and they don’t just support the causes dear to their hearts through donations, they also invest in them. That way, they make a hefty return, but they also have a clear conscience, knowing that the cause is a good one.

They usually benefit from the help of a financial advisor, who can tell them what to invest in. And the method is not limited to just millionaires. More and more millennials (two thirds) and about a third of generation x-ers were found to be involved in such socially responsible investments.

Dubbed as a “feel good return”, this allows people to invest without guilt, but they should still retain a balance and not invest everything in just one place, which is a good tip if you want to manage your money like these millionaires.

The case for cash

Studies have found that people who spend cash spend around 12%-18% less than their counterparts who use credit cards. But that’s not why millionaires like cash. In fact, the reasons given were diverse:

  • They want to have money ready for investments
  • They want to have easily-accessible disposable income to spend in order to live the way they desire, including shopping, vacations, eating out, etc.
  • They want to have a means to protect themselves financially, in case of a market crash or a changing market

If you’re looking to manage your money like a young millionaire, going with cash cannot steer you wrong, especially if you have a safety cushion to land on in case times get rough.

Real estate investments

Real estate remains the tried and true of investment, because it offers multiple income sources that are more or less steady. While investing in stocks of a major company can pay out really big, it can also be incredibly risky, so maybe that’s not something to emulate when it comes to how you manage your money. Rental income, by comparison, is safe.

Interesting is that these young millionaires seek their friends’ and their families’ help, but also the Internet’s advice, when it comes to financial matters. Baby Boomers, by contrast, were much more likely to trust a professional with their money and their investments in their future.

This is just one of the signs that money management in traditional ways doesn’t fly anymore. A growing number of millionaires (not only the young set) claimed that they would like to receive automatic advice from a robot, per the same report from Capgemini.