Best Finance Network
Get the best connectivity about finance.

At present, owning a house has become a lot easier than before because of the prevalence of companies that offer loans with flexible terms and payment programs. Therefore, you can purchase your dream house just as long as you push the right buttons and make the right moves.

One way to achieve this is to apply for a home loan, because with this you can avail the necessary funding that comes with fixed interest rates andhas no ongoing fees. That’s value for money that you can never get elsewhere.

How do you avail the right home loan that will go well with your financial status? Read on and find out.

First, you should find a lender that offershome loans. The good news is: this is relatively easy because of the number of reputable companies out there that offer them. Plus, you can achieve this without leaving the comforts of your home because you can find a lender by doing an Internet search. You can look for building societies, like NPBS, talk to their loan officerto see if their home loan programs complement your needs, preference, and budget. Aside from the said institution, there is a wide array of companies out there that can help you avail your dream house.

Alternatively, you can check local bank and credit union websites to find out if they offer such program. If a local bank or credit union that is based in your area offers one, grab the opportunity and contact their loan officer. They’re generally more than willing to answer your queries and offer sound advice.

Once you’ve found a lender, you’ll have to study the application process. In general, this aspect is easy, but it may take some time. You’ll have to give your personal information and hand over paperwork that confirm your employment status and monthly income. After sending your application, company loan officer will check the authenticity of the documents and decide if your application will be approved or not.

If your loan application becomes approved, make sure to scrupulously review the terms and conditions before signing up. There are several factors that you need to consider and these include the interest rates, monthly payments, and penalties, among others. If you feel that they will not have a negative impact on your financial status, then sign the dotted line and avail your dream house.

Owning a house nowadays is a lot easier that it was, say, 10 or 20 years ago and you simply need to do your homework beforehand to avail the right loan that will not mess up your budget and credit rating. Afterwards, you can avail your dream home in no time at all.

Don’t overlook the precautionary measures that were elaborated above because neglecting this aspect may wreak havoc to your finances and bury you with debt. So, follow them and obtain your dream house and achieve financial stability in the process.

The concept of just making interest-only payments on your student loan while still in college sounds like a simple concept. This will require you to only pay the interest off on your loan without actually paying off the principal that the loan is based out of.

Here’s the Rundown

For an unsubsidized loan, interest accrues on day one after you’ve taken the loan out. The formula banks use to calculate interest is: rate x loan balance / 365 = daily interest. So if you take $4,000 to pay for college with 3.86% interest, the amount of interest you’ll accrue on the first year will be $154.4. If you take another $4,000 loan the next year, your principal now being $8,000, your interest will be $308.8. At the end of 4 years in college, taking out the same loan amount every year, the interest you would have to pay would climb to $1,544. If you’ve paid off your interest during college, the amount you’ll end up owing will be $16,000 instead of $17,544 when it comes time to paying down your loan.

You can make monthly payments each year to pay your interest while in college: $12.86 for year one; 25.73 for year two; 38.6 for year three and 51.46 for your last year of college. If you paid off your interest during your years in college, you’d avoid a term called interest capitalization which basically means interest accruing on top of interest. Essentially, you’ll end up saving a lot of money making this financial strategy very valuable. Here are a few other positives to paying off your interest while in college.

It Encourages Positive Habits

It is easy to fall behind on your payments if you don’t have sensible habits. You just need to consider making a good habit of paying off your debt whatever you have taken in form of loan. Interest-only payments on your loan will help you get into the habit of saving money for your loan and can even help you adjust your finances properly. It is critical for you to think about how you’re going to manage your finances when it comes to getting such good habits to work for your life in the long run.

It Manages Your Credit

You may find that your overall credit rating will be a little easier for you to work with if you just manage your debts the right way. By keeping the charges on your student loan from being too high while also making payments on time, you will find after a while that your student loan will do more to help your credit rating. This can be critical for any of the different forms of credit that you might require at some point in the future.

It Keeps Your Debts Organized

More importantly, you might find that your payments will be a little easier to manage over time. You will have a good idea of what you would have to spend in order to get your debts covered. Of course, you can always choose to pay a little extra every once in a while to cover a part of the principal but the fact that you can keep your debts from being a burden to your life is a point that is great in its own right.

You have to see that interest-only payments are going to work well for your demands. You can get more out of these payments as you will keep your costs down while being astute with your responsibility to take care of what you owe.

A Few Ways you Can Afford Making Monthly Interest-Only Payments

If cash is really tight, there are some things you can do to afford making those interest-only payments on your loan. You can reduce the amount of your loan by seeking out easy scholarships to apply for that’ll help pay for school. You can also find a part-time job or find a few online gigs like being a virtual assistant, selling services on Fiverr, or getting paid to write articles on iwriter or text broker.

Developing an effective and sound budget is truly important or crucial when you wish to achieve financial targets, control household costs and manage debts. A budget is the key ingredient to achieving financial goals, achieving household goals and managing debt successfully. Apart from this, by creating a budget you may pay off debt, buy a bigger apartment and get a better car.

A sound budget can only be developed when you understand your entire financial situation in a better way. You may experience a lot of challenges while creating a budget that suits your young family. In your attempt to develop a smart budget, you might wonder how to begin with it. Developing a budget is about identifying the starting point and the steps to go with it. There are a few good websites that may help you prepare an effective budget. In order to catch up with the best sites across major search engines, you may click on Check n’ Go•.

Consider a few budgeting tips that will keep you motivated –

1. Note all expenses

All of your monthly expenses need to be written in a notepad. Make a list of each single item that you purchase every month. Record all goods that you use on a daily basis, be it those ice creams that you keep on the refrigerator, your parking meter charges as well as your morning coffee.

Although it might seem tedious it will work in your best interest. Once the costs are itemized, you’ll need to go through the list and find which items are absolute necessities. You may try creating two categories namely discretionary and essential. You’ll certainly come to know how much you can actually avoid spending or save out of your list of expenses.

2. Exercise discipline

In order to stay within a tough budget, you’ll need to count on your means and exercise discipline and self-control. You must learn how to cope with the challenges of staying within a budget. There is a certain trick to get things done while staying within your budget. A budget resembles a diet; you’re bound to shed a few pounds once you start having lettuce leaves for about 7 days. You don’t need to live without fulfilling your daily necessities. For an occasional reward or treat, a certain allowance needs to be incorporated within your budget.

3. Set your targets

Set achievable targets. This way, you’ll be able to analyze each of your moves and proceed without committing mistakes. Meeting new targets will be easier once you reach your initial goals.

4. Use an online budget plan

You’re bound to come across a number of online budget planners that come for free. A majority of the budget plans are friendly towards their users. A budget planner helps you to measure the out flow of your money. Once you can measure your expenses, it will be easier for you to manage them.

5. Seek assistance

You may use free information available over the internet for maintaining or developing a budget. When it comes to promoting financial websites bearing quality budget tips, you may utilize sites like Check n’ Go•. Websites like this are aimed at educating people on budgeting and other financial areas.

Just as the name implies, a short term debt financing stands out as a financing form that involves a financial obligation a company has to fulfil in a shorter period of time when compared with regular financing options. In most situations we are talking about a maximum of 2 years, although 1 year financing is usually offered.

Many companies opt for short term debt financing because of the fact that they want to have more working capital available or it is possible to need more money as day-to-day operations need more cash. Cyclical operation conditions or companies that are faced with international trade need such financing in various situations.

According to Today’s Growth Consultant Reviews, there are 4 types of short term debt financing that you can consider:

• Overdrafts

This is basically an instant credit extension offered by the lending institution. As a company gets the overdraft agreement, it can transmit or draw down cash from the account beyond the balance that is available. Credit amount will always depend on overdraft limits that are negotiated with banks. In this case the advantage is that you will only take out as much as you need for the operation activity when it is necessary.

• Credit Letter

A credit letter is basically a letter that comes from the bank and guarantees payments towards sellers. Sellers are guaranteed that amounts will be received during credit period. In this situation the advantage is that the company is usually going to be offered a better overall credit term when dealing with a supplier.

• Short Term Loans

These are loans that have to be repaid in a short period of time, together with the associated interested. This is a loan that is not revolving and usually has a completely fixed repayment period. A company can use it in order to gain more liquidity as working capitals are lower or are necessary (for instance, for paying creditors or buying stocks).

• Exchange Bill

This document will bind a party to pay an amount of money at a fixed rate to the secondary party at a specific date. In most cases this is a bill that appears when dealing with international trade. Exporters can grant a credit for the importer for the goods shipped with an exchange bill for the amount.

Short Term Debt Financing Qualification

In order to receive such financing you do not need to think about formal qualifying criteria. Usually, the company needs to hold a stronger business case that supports business viability and owner capital. A supplier can offer a short term credit for the purchases in order to enhance competitiveness. The bank will offer overdrafts and short term loans in order to earn an interest and build client relationships. To put it simply, if the company is transparent in operations and financials, there is a strong possibility that such financing would be offered.

In October 2014, the personal saving rate, the ratio of personal income saved to personal net disposable income, was only five percent in the United States. Americans are not known for being savers; the all-time high for personal saving ratio was 14.60 percent in 1975 which is lower than many developing countries.

The truth is, life happens and it can often be expensive. By building your savings into a nest egg, you will be better prepared for these developments.

A Nation of Spenders

Almost half of American households (44 percent) have no more than three months of expenses in a savings account, leaving them unprepared for medical, legal, or other emergencies. Many rely on credit which accumulates expenses through interest rates and in some unfortunate circumstances, late or missed payments.

The National Foundation for Credit Counseling conducts a survey every year on consumer financial literacy. According to the latest survey, 16 percent indicated that their emergency fund was insufficient. The same percentage also admitted to not having enough in savings to retire.

Saving Is Necessary

Relying on credit instead of stashing away money is a risky game. As your balances rise, so do interest rates and fees. Many people file bankruptcy because they do not keep up with servicing their debt.

As this pattern continues, credit scores drop but life does not stop happening. If a car needs brakes, a water heater blows up, or you get sued or face legal charges and need to pay criminal defense lawyer fees, this means having to find money quickly. A household that is liquid asset poor is also vulnerable to predatory lending that only deepens financial insecurity.

Get Started

The economy is unpredictable and only a healthy savings account ensures stability. The time to develop this habit is now. Here are suggestions to get started:

• Start Small. Even if you only transfer $5.00 from every paycheck into savings account, it is better than nothing. The trick is to make this a habit and putting aside a small amount will accomplish that. You will likely increase this amount later, due to the satisfaction of saving.

• Set a Goal. A $1,000 emergency fund covers most every day emergencies like car or home repairs. While legal fees and medical bills could easily wipe out a fund of this size, $1,000 is a good goal to start saving. Break it into two $500 goals if that seems more feasible.

• Schedule Automatic Transfers. Some employers offering direct deposit will allow you to split your paycheck into two accounts. If that is possible, arrange a certain amount for your savings account. Otherwise, set up an automatic transfer from checking to savings at each pay period so the saving process occurs despite any lapses in discipline.

A nest egg means an emergency becomes an inconvenience instead of a disaster. If you are relying on credit or living between paychecks, take it as a sign to change your financial habits. Rather than mull over your mistakes, take action today to start a good savings plan.