Tag: second mortgages

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Debt Management

How to Successfully Get Out of Fast Loans

How to Successfully Get Out of Fast Loans
How to Successfully Get Out of Fast Loans

Fast loans are cool. You just apply online and get the money in a really short time. However, it’s been proved that these loans can get you in all sorts of trouble due to – exactly – their fast nature, in the sense that they have to be repaid in record time. This could prove to be difficult to do since their interest rates are exorbitant. You should be familiar with how to get out of fast loans before you apply for any. And don’t even think that the solution to this is to repay a loan by getting another one.

A Couple of Solutions

Consolidate the loans

Dealing with multiple fast loans is next to impossible, all the more so when each of them has a different interest rate. If you’re in this unfortunate position, debt consolidation is your best shot at getting out of those loans. When you consolidate these loans, you roll them into just one. Needless to say, it’ll be so much easier to repay just one loan than multiple ones. Debt consolidation could also reduce the overall interest rate on the new loan, so there’s one more reason to try this out.

Get a better job

The more income you have, the easier it will be to repay your loans. This is obviously easier said than done, but it certainly wouldn’t hurt to attempt to do it. The excess money you’re left with after paying for your expenses can be used for making some larger repayments. Thus, you’ll get out the debt quicker. Before you do this, make sure that you can change jobs mid-debt. There are certain lenders who frown upon this (for reasons best known to themselves). If it’s possible, however, don’t even think twice.

Stop getting other fast loans

We shouldn’t even need to say this, but we ought to, since many people go into a debt spiral unconsciously. If you keep on borrowing money, you’ll never get out of debt. Before you know it, you’ll have to consolidate the debt or just sink lower and lower. This is by far the simplest way of getting out of fast loans. Just stay away from them. If you need more money, ask your family or friends for help, but don’t get another loan.

Put in the extra hours

If possible, ask your employer whether or not you could work extra shifts, just until you’ve accumulated enough money to pay up those fast loans that nibble at your sleep and wallet.  Another thing you should consider is getting a part-time job. Any extra money is more than welcome, especially when it’s in an amount that allows you to pay your debt. Yes, you’ll be exhausted and will probably have bloodshot eyes for a while, but it’s totally worth it.

Embrace frugality

Start cooking instead of eating at fancy restaurants. Stop watching TV for hours on end and read a book. Consider buying in bulk and using food coupons for that. This should be a last-resort type of solution that you should use only when it’s impossible to get a part-time job or fire on all cylinders at the job you have currently. Frugality isn’t half bad. In fact, you might stay frugal for the rest of your life after seeing the perks it has to offer.

Don’t waste money on useless things

When you go down to the mall, everything looks amazing instantaneously. However, you don’t actually need 80% of those things. Use the money wisely for extra payments. All those shiny things will be there after you’re out of debt, too. Don’t toy around with your fast loans. They tend to have a snowballing effect and you can easily end up in a situation where it will be impossible for you to get out of debt. A lot of people waste huge sums of money on all sorts of things and wonder why they can’t get out of debt. Don’t be one of those. Get rid of your debt and afterwards, you can revel as much as you want. Until then, though, put your money to good use.

Fast loans are among the most-taken loans in banking. No one can say that they’re not efficient at what they’re supposed to do, but they’re quite dangerous and one needs a thorough understanding of how they work in order to stay safe. Australian Lending Centre can answer your questions in regards to this type of loan, as well as provide some of the best offers you can find. No matter what problem you have, they will be more than happy to assist you with it.

And as a parting note: stop taking more loans if you’re already sinking in debt. That’s naturally not the way to get rid of loans.

Categories
Business Loans

Business Loan Despite Bankruptcy

business loan despite bankruptcy

Bankruptcy is a highly dreaded word in the realm of financing and getting a business loan despite bankruptcy is a bit difficult. Even though it is dreaded, many people end up in a situation in which filing for bankruptcy is the only solution they have. Nonetheless, considering that you’ve done that in the past, a looming question is can I apply for business loans regardless of that? As you might expect, the answer to this question isn’t a fixed one – there are many factors that should be considered, which we’ll outline in the present article.

Bankruptcy Can Be a Fresh Start

Irrespective of the negative connotations associated with bankruptcy, you should note that this isn’t the end of the road – or at least it shouldn’t be this way. Even though it isn’t an easy thing to do, the most challenging process follows after filing for bankruptcy. This refers to aiming at rebuilding your finances and credit.

Generally speaking, a bankruptcy statement will remain on your credit for a few years’ time. Therefore, if you apply for business loans afterward, your capability of getting financing won’t be affected in any way. On the other side, if the bankruptcy statement still is still present on your credit report, which will, inevitably, impair your creditworthiness and reliability as a borrower.

Can I Apply for a business loan despite bankruptcy?

Yes. But bear in mind that your options will be limited. Generally speaking, the longer you wait after you have filed for bankruptcy, the more likely you are to get convenient loan terms and interest rates. At the same time, there are some lenders that are more open to working with you, as opposed to traditional banks whose lending criteria are rather stringent.

Nevertheless, the downside is that the interest rates and additional fees will be significantly higher than they normally should. Therefore, before you apply for business loans, make sure that you can afford to make repayments. If you can’t, this will imminently worsen your financial situation. Evidently, applying for a loan when you’re struggling financially is a decision that requires a lot of consideration and in-depth thought.

The Differences Between Personal and Business Bankruptcy

Considering that you own a business which has established credit, you might have the option of applying for business loans. In this scenario, your firm’s credit rating will be taken into account. In other words, your personal bankruptcy file won’t affect your ability to get business loans in any way.

Your personal credit score is a major constituent for most lenders. That is to say, your credit rating and personal finances are of major significance, even though this is to your disadvantage. Hence, depending on the state of your finances, you might be unable to get financing. Or, your only option could be getting business loans with unfavourable terms and interest rates.

What Steps Can You Take?

Separate Business and Personal Finances

Before anything else, you should strive to distinguish between your personal and business finances. The thing is that, if your business is new, this might not be a possibility. But, if you’re an established business owner, you should definitely separate your personal finances from your firm’s finances. Otherwise, you are inevitably taking unnecessary risks.

Apply for Secured Business Loans

If you really need a form of financing, your only option could be using your valuable assets as collateral for new loans. By adding collateral, you are instantly minimising the lender’s risk when they borrow you the money. This could increase the likelihood of having your application approved.

Be Patient

If you need a business loan despite bankruptcy, avoid requesting a $500,000 loan immediately afterwards. On the contrary, take up smaller amounts of money instead, and focus on making the repayments – this will allow you to rebuild your credit and prove that you’re trying to get back on your feet.

Explain The Circumstances of Your Bankruptcy

Talking openly about the circumstances that led to your current financial situation can be helpful when you apply for a business loan despite bankruptcy. There are situations in which unexpected circumstances can cause unwanted complications. We’re referring to health problems, divorces, or natural disasters – these could seriously mess up your financial life without any fault of your own. Therefore, by being upfront and transparent, you can increase your chances of getting financing for your business.

At the end of the day, it is mandatory to comprehend that each lender has different criteria that ought to be taken into account. Do your research beforehand, so that you don’t end up sending numerous applications all around without any results. Australian Lending Centre can help you – make sure you visit our website to find out more about our loan offers.

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
Mortgage

The Reality of Mortgage Repayments

low doc home loans||low doc home loan||alc reality of mortgage repayments

In spite of the loan solution you carefully select, you should comprehend the way in which a loan works, and what it implies. Understanding the reality of mortgage repayments is the first step to making the right decision to fit your financial status.

Understanding Interest

Recently, Australians have benefited from low and attractive interest rates. So, how does this influence your mortgage repayments? Mortgage providers grow or diminish their rates, to mirror the movement exercised by the set cash interest rate. At the moment, interest rates are estimated at around 4.5 per cent, depending on the lender.

Although selecting fixed mortgage repayments over variable ones might seem the right choice, as it protects you from fluctuations, some other aspects should be considered. If you’re locked into a variable home loan, when the cash rate lowers, your interest will also decrease. Even though this is an unmatched advantage, Aussies should know that low rates don’t plan on staying this way forever.

To grasp the way in which this phenomenon influences your mortgage repayments, hear us out. A standard variable rate for a 25-year old loan of $200,000 would have a $1112 monthly payment, with 4.5 per cent interest rate. If this would change with as little as one per cent, it will either rise to $1228 or diminish to $1001.

Also, bear in mind that, over the life span of a loan, fluctuations may reach $100 per month. What we’re trying to say is that you should embrace a repayment plan with the right contingency measures, in the case in which the interest rate spikes.

When the Loan Matures

You should also note that the market conditions are due to change. That is inevitable. In this respect, you should take advantage of whichever opportunity you have to refresh your financial approach. An option might be to discuss with your financial advisor. But, before doing that, there are some solutions for adjusting your mortgage repayments:

  • Refinancing: When the interest rates are low, you can always consider refinancing. That may be a more convenient option. Even though there are exit and entry costs that should be factored in, as a general rule, you’ll recoup those expenses over the life of the loan.
  • Pay ahead: If the interest rates are low and your budget enables you, you should consider getting ahead on your mortgage repayments. If you manage to make a considerable repayment during this time, not only that you will decrease your overall loan balance, but you’ll save a lot on interest rate payments.
  • Fix your loan: If your credit conditions are permissive enough, we advise you to lock in the new low rate.

To conclude, comprehending the market conditions does pay off. When you sign a loan agreement, you should know what it implies, how the market is due to change and how it can affect you.

In spite of your current status, don’t hesitate to refresh your mindset, in the case in which the market alters in your favour. Why shouldn’t you take advantage of it? Nonetheless, bear in mind that you should discuss with your financial advisor before taking the leap.

Categories
Mortgage

Is a Second Mortgage a Wise Investment for People With Bad Credit?

bad credit home loan||bad credit home loans||bad credit home loan

Not sure whether to get a second mortgage is a wise investment for people with bad credit or not?

Here are a few things to keep in mind before conditioning your mind into making new monthly mortgage payment again.

Some people don’t think second mortgages a wise investment

Some people, especially retirees don’t like the idea of carrying a second mortgage throughout retirement, despite the thrill of reinvesting the money into something lucrative. New homeowners with enough home equity to use for good business ventures also don’t think that the second mortgage is a brilliant financial strategy? But, just like any other investment-carrying, a second mortgage can be a good idea in certain situations, but there can be drawbacks too

Here are two factors you must consider before hopping into second mortgage loans for people with bad credit.

Home equity is a second mortgage

Do you have more than enough equity to take the plunge? Don’t wait for another housing bubble to burst. Use your equity as a form of leverage before the home values plummet sending many mortgages down the sink. Know where your equity stands, before you sign up for a new loan.

Since second mortgages allow you to borrow up to 80% of your home’s value-it is not enough to know how much you can borrow, but how much you can repay. While the second mortgage has lower interest rates than other types of loan, remember that you are still securing the loan with your home. While it reduces the risk for your lender, it increases the risk on your part-because inability to pay it could mean losing your own home.

Diversification

A lot of people suffered during housing bubbles because they got fooled by attractive real estate returns in the past years. But, those who opted to get a second mortgage to diversify their portfolio were able to do better and can be expected to do so in the future.

You are shifting your assets from your home by getting a second mortgage and investing in ETF’s or mutual funds or in a business venture, thereby diversifying your portfolio to enhance your net worth.  Aside from the fact that diversified portfolio outperforms residential real estate returns, getting a second mortgage is also tax-deductible. So, if your home makes up a huge portion of your net worth, it is advisable to get a second mortgage and use it as a tool for diversification. But, despite the potential advantages of this strategy, it can also have some side effects.

If you want to take out a mortgage as a form of leverage, you should know how to handle your other investments wisely.  Remember that by getting a second mortgage to diversify your assets, you also expose your home and your additional investments to risk. Increased risk exposure requires increased wealth management strategy as well.

In short, if you are scared of downward fluctuations, make sure that you have personal skills to handle all your new investments before you get a second mortgage for diversification purposes.

Learn more about second mortgage loans for people with bad credit and the financing options available for you by talking to Australian Lending Centre’s credit consultant today!

Categories
News Home Loans

Interest Rate Cuts by RBA, Great News for Home Owners and Businesses

low interest rates||Low Interest Rates

Earlier this week, the country’s two biggest banks passed on the latest interest rate cuts for loan customers. The Commonwealth Bank and Westpac have paved the way for other banks expected to follow suit on Friday, February 6. The Reserve Bank of Australia’s (RBA) official rate cut will begin its full effect on February 20, creating an opportunity for the cheapest home loans in more than forty years.

interest-rate-cuts

Since the steady decline in the Australian dollar and the fallen price of oil in the past few months, the RBA has reduced the standard variable rate to a record low of 2.25%. The RBA governor Glenn Stevens said the board judged that a reduction in the cash rate was “appropriate” due to the downward forecast of the economic growth and a peak in the unemployment rate. Commonwealth Bank of Australia was the first big bank to reduce its standard variable rate by 0.25% but Westpac reduced its SVR by 0.28%, making it its lowest level since 2009.

Interest Rate Cuts – What it means for Australians

The latest interest rate cut posed by the RBA opens the door for many existing and new homeowners as well as business owners. The new, lower interest rates provide homeowners with a better chance of being able to successfully make regular repayments on their home loans. However, banks and other traditional lenders will still check loan applicants’ credit files if they qualify for a loan. Blemishes on credit files can stand in the way of new and existing homeowners from being able to fully access the benefits of the new lower interest rates.

An alternative to traditional lenders is to apply for home loans through other financial institutions. Australian Lending Centre is offering similar interest rates through our range of products so applicants can enjoy the new lower rates. Our loan options include first home buyers loans, home equity loans, bad credit home loans, investment property loans, second mortgages and many more.

The RBA’s interest rate cuts provide exciting opportunities for new homeowners and businesses. And Australian Lending Centre can help you take advantage of this amazing opportunity. Call us on 1300 138 188 for a free consultation or enquire online today.