Money and Finance Articles

A personal loan is the money you borrow from a lender for your own private use. The lending institution can be a bank, investment broker, or private lending company. You can apply for a loan in your home town or on the internet. Personal loans can be used for variety of needs including a vacation, vehicle repairs, education, medical expenses, home repairs or remodeling, legal bills, and debt consolidation.

The maximum amount of average personal loan is $15,000. The main criteria for such loans is your income and your overall credit rating. The lending institutions checks for this eligibility especiallly for the line of credit. There are two types of credits one is personal loan and the other one line of credit. The distinguishing feature between the two is, in line of credit you can access money upto the credit line in full or just how much you need, where as in a personal loan a large sum of funds are given.

Personal loans are categorised in to two types, Secured and unsecured. Depending on some type of collaterals, secured loans are given. The property kept as a security against the loan can be a vehicle, land or any type of asset. Contrary to that, unsecured loans doesnot require collateral but the interest rate is higher due to great risk in non payment.

Personal loans are given for one to five year term. But the best part is it even depends on the lender and the borrower. Its always important to understand the terms before accepting loans. You will pay low amount if you take loan for longer term but due to long interest rates you will end up paying huge amounts. Its better you observe to what purpose exactly you need a loan and how much you need, so that you can pay back easily and quickly. You should make payments on a monthly basis regularly so that you are not likely a defaulter.

Personal loans are mainly used to consolidate other debts. This makes you to pay one single payment instead of many expenses. This helps you to set a budget and life within the boundaries of it. Mostly, a person who takes a personal loan to combine his debts ends up in huge debts again. This adds up not only to pay the personal loan each month but also the new debts. So its better to join a free course offered by non-profit credit counselling centres around the nation, who offers management course, who feels to be at risk of stacking more debts.

Personal loans are a great way to access the money you need quickly. The application process is simple. You will generally need to verify employment, income, and residence. The lender will pull a credit check. You will likely still qualify for a personal loan if you have bad credit or no established credit. However, be prepared to pay a higher interest rate and have some type of collateral to offer.

The times are oh-so-bad and recession or depression or a slowdown (whatever you may call it) is upon us. Well, this world is all about survival of the money savers and so, save we must - here are 30 practical ways of cutting expenses and saving big:

1 Save on energy costs - use power-saving CFL lights, monitor and change your thermostat’s temperature as required during daytime and night and don’t leave lights/appliances on when you don’t require them.

2. Skip the movies and rent or borrow dvds. You will also save money by making your own popcorn.

3. Instead of meeting friends for coffee or drinks invite them over for potluck. Take turns each week at each others house.

4. Carry your lunch to work.

5. Use public transportation or a carpool.

6. Save money on drugs with generics whenever possible.

7. Make a list when you go grocery shopping and stick to it. Use coupons on items you normally buy and try to shop on double coupon days. Stocking up on non perishables or items that can be frozen is also a good idea when they are on sale.

8. Call long-distance in the evening and on weekends. If you make a lot of long distance calls look for a plan that offers unlimited free long distance.

9. Start saving your spare change. You will be surprised at how fast it adds up.

10. Buy clothes off season when you can get the best prices. I stock up on kids clothes a year in advance and just buy a size or two larger depending on the age of the child.

11. Stop smoking. Easier said than done but can you really afford not to?

12. Install a water saver type shower head.

13. Save money by working out at home. Rent or borrow an exercise dvd before buying to make sure you like it.

14. Keep your vehicle well maintained. That way you will hopefully get many more miles out of it well after it is paid off.

15. Shop discount stores. But be careful, sometimes you can still find the items cheaper on sale somewhere else.

16. If you’re paying a high interest on a mortgage or credit card - refinance it, change it or consolidate your debt to save on interest.

17. Eat out less. Try to keep stocked up on the ingredients for quick meals to keep from going through the drive-thru on days you are just too tired to cook.

18. Always bargain at shops and look at a few options before making a purchase. If you’re buying fancy stuff like jewelry, buy it from a pawn shop.

19. In the market for a new home? Find a home under the price the your bank has pre-approved you for. With more affordable payments you may even be able to pay a little extra on your mortgage each month.

20. Check out Freecycle.org for getting free stuff or getting rid of things that you don’t use. Many communities have their own chapter.

21. Stick with basic cable. Your family might balk at the idea but your wallet will thank you.

22. Don’t waste money on manicurists and pedicurists - you can do their work yourself at home.

23. Having a savings account just for emergencies is a must! Otherwise you’ll end up resorting to credit cards. Try to put away just $5.00-$10.00 per week away and watch it add up. As you pay off debt increase your savings.

24. Save on dry cleaning costs by purchasing items that can be washed at home.

25. Shop around for cheaper car insurance, homeowners, etc.

26. Drink less soft drinks and more water. Not only will it save on your grocery bill but it is also better for your health.

27. Have a rummage sale or check out local consignment shops. They will either give you a set price for all your stuff or, sell your items and share the commission with you.

28. Always pay your bills on time. Late fees can really eat up your budget.

29. Consider planting a garden. Produce such as zucchini can be shredded and frozen for future recipes. Find information at your local library online on how to get started.

30. Know when to splurge. Cut back on the trivial things that eat up your paycheck and you can splurge occasionally on something fun.

Whether you try just a few of these tips or all of them, these tips can really help you stretch your budget.