Tag: finances

Categories
Financial Planning

Tips to Manage Financial Challenges

family facing financial struggles

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.

Categories
News Financial Planning Personal Loans

Private Lenders: An Alternative Source of Financing

low interest private lenders||guaranteed approval loans for bad credit applications||low interest private lenders

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!

Categories
Financial Planning

How Quick Loans Can Help You Take Control Of Your Finances

no credit check loans||Short Term Loans||short term loans||personal loans australia||Short Term Loans||personal loan

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!

Categories
Debt Consolidation

A Savings Plan That Works

short term loans

A savings plan should be a part of everyone’s life. It is not something you need to consider but something that you need to make a conscious decision on doing and sticking with. Just like everything else that you are serious about you should have a plan on how to do it. With no plan it can just be another fickle idea that can go down the drain and be completely forgotten.

Here are a few ideas on how you can develop a savings plan and tricks on how you can actually stick with the plan.

Savings Plan

Step 1: Keep track of your expenses

After every pay day, you feel the need to spend even on things you don’t need then you wonder where all your money went. So the first step in a successful savings plan is to keep track of your expenses. Do a budget list- write down all the bills you need to pay and things you need to buy. This way you can pay all your bills and you can cut off buying unnecessary things like extra lollies and snacks. Making a budget plan for your expenses will help you on the next step.

Step 2: Keep a part of your income for savings

After listing down your expenses and creating a budget plan, you need to decide now a reasonable amount for your savings. Allocate an amount that will still allow you to eat real food (not canned goods) and enjoy from time to time. But still, save at least a decent amount that will make you reach your savings goal in a short amount of time.

Step 3: Estimate how long it will take you to achieve the amount you need.

You can either check how long it will take you to save a specific amount of money or check how much you need to save to achieve the amount you need in a specific amount of time. You can use a savings goal calculator to know how long it will take you. If you’re saving for a large amount it may take you longer than you expect.

Step 4: Find a bank that offers high interest rate

An easy way to help you gain extra dollars is to have an account with a bank that offers high interest rate like 3.60%. With this in your savings plan it will help you reach your goal faster.

Step 5: Stick to your savings plan!

This will be the last step but the most important. Having discipline and sticking to your savings plan is the key to achieving your savings goal. Keep your money in a savings account to avoid spending it.

Categories
Debt Consolidation Debt Management

The Importance of Avoiding Bankruptcy

Debt Consolidation

Bankruptcy is that particular legal status of a person, a company or other entity that can no longer repay his or its debts to creditors. Even though some people may affirm that bankruptcy also has a few advantages, the list of disadvantages is definitely much longer. For this reason, you should think of bankruptcy only as an ultimate last resort, after you have used any other alternatives. Learn the importance of avoiding bankruptcy below.

Main Disadvantages of Bankruptcy

No matter if it belongs to a person or business, this status triggers a wide range of disadvantages, which will have a major negative impact on someone’s reputations. Furthermore, there are also practical drawbacks that will be experienced for sure by the person in this situation. Some of them are immediate while others will come around later.

First of all, you should be aware of the fact that you will lose most of your proprieties that are valuable. You will be allowed to keep only the assets you need for a basic standard of living. Anything you own and have a high value will be sold in order to pay the money to your creditors.

Another aspect you should consider before declaring bankruptcy is that you will encounter plenty of difficulties when trying to access credit. There is a specific limit of the credit you are able to obtain, but your chances are significantly lowered by your status, as there are only a few banks which take the risk to borrow money to a bankrupt individual. You may think that soon after getting rid of the bankruptcy, this problem will end. In fact, this issue will haunt you for seven years as the bankruptcy record has to be added to your credit report and remain there throughout this period. Also, according to the policy of some banks or finance companies, your access to your credit cards can be banned.

Moreover, there is a permanent record regarding this aspect that may be accessed by anyone who pays a small fee. They will be provided with an electronic index of these records, also referred to as the National Personal Insolvency Index.

When it comes to reasons why you should be avoiding bankruptcy, another important aspect is that this status will lower your chances of getting employed. In fact, even if you would convince an employer, there are particular industries with strict rules regarding this aspect, and they need to obey them and not hire you.

Less Extreme Alternatives to Bankruptcy

A convenient alternative is a debt agreement. This option is available for those who have not filed a bankruptcy form and consists of a debt settlement arrangement between you and your creditors. This will allow you to settle affordable debts, for example by freezing the interest rate.

Another less extreme alternative is a consolidation loan, which will help you manage your current debts much easier.