Categories
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.

Categories
Low Doc Loans

3 Important Factors to Consider When Applying for Low Doc Loans

Are you applying for low documentation loans? Learn more about them and the factors to consider when applying for low doc loans.

Emergencies happen, and when they do, it could be that you have very little money or none at all to fix until your next payday comes in. With no bank savings to fall back on, and such little time to make quick decisions, especially if it’s a medical emergency, where would you get the stash of cash you need? When you’re a small business owner or self-employed with no tax returns or financial documents to submit to banks, low doc loans can be the most logical, if not the only choice.

While you may be in a rush to apply for the first low doc loan option you come across there are important things to consider when choosing the most appropriate loan alternative for you.

Here are some of them:

Eligibility

Not everyone can apply for low document loans. Only self-employed borrowers who have legitimate reasons for not submitting proof of income, such late filing of tax returns, can apply.

Low doc loans do not require the usual documents used by banks and big lending forms to verify income, such as payslips, financial statements and tax returns. Instead, you are only required to sign an income declaration form that will be the basis of their assessment. Most lenders ask low doc loan applications to declare their assets and liabilities and some lenders may ask you to include this in your income declaration form. During the assessment, lenders usually check whether your income, assets and your age match.

At the Australian Lending Centre, our team of loan specialists strives to keep the proof of income and documentation at a minimum. If an income declaration is the only thing you can present, well, that’s enough for us! Who knows? You may qualify for a loan of up to $3 million.

Interest rate

One of the big factors to consider when applying for low doc loans is the interest rate. It’s important to shop around and make sure that you get the lowest one available in the market, without the hidden charges.

Low doc loans offered by some banks and financing institutions may come at extra costs because of reduced financial documentation. One strategy is to present more financial document to lower the interest rate. You may be required to pay extra fees and charges and higher deposits. Others require security such as investments, cars and other properties. But you want none of that; we can offer you the most competitive rates suitable for self-employed borrowers without the heavy paperwork. We are also known for fast turnaround and processing times.

Credit rating

Finding low doc loans with lower interest rates is difficult when you have a bad credit rating. You may need a little more time to get your good credit rating back, as it would depend on your credit payments. But, if don’t have the luxury of time or the money to pay them as soon as you can, the Australian Lending Centre offers low doc loans for people with bad credit. You may want to avail of our low doc car loans, home loans and personal loans. You may also try our low doc investment loans to support your dreams.

Learn more about our low doc loans. Contact us today!

Categories
Debt Consolidation

A Savings Plan That Works

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
News

Online Scams to Avoid at All Costs

Scams are everywhere. Protect yourself and do not let crooks take advantage of you. They are just after your money and they are trained to trick people. Everyone must avoid these scammers. Being familiar with their tactics will help you become aware of how they work. Have you encountered a message online that promises you high income? If the offer is too good to be true, then most likely it’s a scam. It’s sad but there are people who fall for this too good to be true schemes. Some victims are innocent while others are driven by their greed and love for money.

Avoid Online Scams

Here are some of the most common forms of scams you can find online:

  1. Work from home – All you need is a laptop and a reliable source of internet, a few clicks and voila you’ll become rich! If you fall for this kind of trap, you will be in trouble. These crooks will train you to become a swindler. The trick involves encouraging people to invest or place their money which will earn high interest in a matter of days. They will force you to keep on recruiting and soon they will be gone not leaving a single cent.
  2. Collector’s items – Some people love to collect original items, old coins, paintings, baseball cards and a whole lot more. Most of them are willing to spend large sums of money to get the item that will be a part of their collection. There are items that become more expensive as years go by, like paintings. And because they are willing to spend for these collectibles, they become the target of scammers. Its either they sell fake items or ask for payment and leave you with nothing.
  3. Free trial – True enough most of these one month free trials are free. They will get your credit card details for verification. But the thing is, the minute the free trial expires they will automatically charge your subscription. Lesson is that do not give your credit card details. If it says free then there is no reason why they should ask for your credit card information.
  4. Disaster relief scams – During calamities and natural disasters, people both rich and poor are willing to extend help by giving donations. And scammers take advantage of this situation. They see nothing but a dollar sign. They see this as an opportunity to make money.

So if you come across these scams online, be wary and never trust everything you see on the internet. There are many scammers waiting to rob you of your money and identity if opportunity arises.

Categories
Personal Loans Bad Credit Loans

Asking for Payment to Recover Your Money

Regardless of the person who owes you money, whether it’s a friend, a family member, or your employer, if you’re reading this article, you must know that nothing is more disturbing than trying to recover your money without success. As the holiday season is already upon us, certainly you could use some extra cash to buy some presents for your dear ones, right? So, it is time you pluck up your courage and do something to obtain your payment. The following tips might come in handy in aiding you to accomplish that.

Asking Payment

#1 – Ask for your payment

While you might assume that asking for your money is pretty obvious, sometimes, asking is all it takes to obtain payment. Some people are actually forgetful, and they might have forgotten that they owe you money.

If you wish to speed up receiving payment from your employer, you could consider sending an invoice using software specially created for this purpose. This will make your message appear more professional, compared to a regular text from the phone. Also, remember to be polite and friendly. Research points that a friendly attitude and a message accompanied by a simple “thank you” can increase the chances of getting payment by 5 percent.

#2 – Make it effortless to pay

A lot of people might try to get out of paying you by constantly saying things such as “I don’t have cash on me now” or “I don’t have your bank account details”. It’s time you send the people that owe you money your bank account details or consider setting up PayPal. Make it effortless for people to give your money back.

#3 – Demand penalties

Now, if you provide services as a freelancer, there’s nothing more annoying than not getting paid. In this situation, a suggestion might be demanding penalties for payments made late. You should consider this as a clause in your agreement, as you cannot keep on asking for your money after providing a service. Another tip might be growing the fees to your services by five percent, and for those who make the payment on time, you could offer a five percent discount. Sneaky but it could work!

#4 – Don’t give up

Believe it or not, a lot of people are unwilling to pay, and if you give up easily on your payment, you are the only one who ends up losing. That’s because, due to common sense, a lot of people don’t want to cause unnecessary drama, and this is why there are so many individuals who keep on avoiding making payments. It’s important that you have a face to face discussion with the person in order to clarify the situation. The bottom line is that you shouldn’t give up. After all, it’s your money. Good luck!

Categories
Home Loans Interest Rates Refinance and Refinancing

Do Rentals Mean Losing Money?

The general, common saying that living in rentals equals to throwing money away is certainly not new, is it? And at first, it would seem this way. Rental means you don’t buy the house you live in, compared with purchasing a house that, in time, becomes yours eventually. Still, various aspects are often overlooked concerning this situation.

The fact is that the standard cliché phrases regarding the effectiveness of rentals have an overreacting approach. Allow me to explain the reason rentals might be a better choice compared to buying a house in some situations.

Are rentals equivalent to throwing money away?

The answer to this question is both yes and no. The fact is that, to some extent, renting might equal losing money. The logic is quite simple. As you rent, you don’t invest that sum of money, which doesn’t eventually grow or bring you any further benefits.

On the other hand, the non-deductible interest on home loans can also be conveyed as a waste of money for a change. Thus, renting is most of the times increasingly more convenient and affordable. Sometimes, renting might be the better choice compared to a mortgage. In the same respect, a house is an asset that is eventually affected by inflation, which comes to the disadvantage of most homeowners in the long run.

Here’s how it is. Let’s say that you pay rent, while, at the same time, you invest in shares or super. If you invest the difference between the sum you pay for your monthly rent and the amount of money you would normally pay for a home loan, there’s a strong chance your financial situation will significantly improve. When making mortgage repayments, you are less likely to make other investments. Still, you need to settle whether this choice is the right one for you or not.

The real costs of buying

If rent money equals dead money, then interest repayments equal dead money as well. The average interest rate in Australia at the moment is estimated at 4.50 percent. This means that you would be required to pay $18,000 per year on a loan of $400,000 if you wish to purchase a house valued at $500,000. This sum is almost as much as you would pay for a year of rent. Additionally, interest rates on variable mortgages are on the growth and are estimated to reach 6.20 percent in the long run.

It is needless to point the ownership costs that accompany house ownership. The ongoing costs of a property include repairs, fees, insurance, depreciation, council rates and so on and so forth. Not to mention that when buying a house, there are costs including stamp duty, commissions and so on.

The bottom line is that it’s up to you to decide whether opting for rentals is a better choice for you than purchasing a home. You ought to consider your personal needs and financial situation, as well as your plans for the future.