Most people have heard about payday loans, some haven’t. Those who never heard about it are lucky, because if you needed a payday loan that means you needed the money fast. So before you go and take out such a loan let’s first go over a few things you need to consider.
Payday loans are small loans that need to be repaid very quickly, so you have to answer one simple question, will you be able to repay that money in such a short time. Also, like with any other type of loan, be sure to check all the lenders, as some will offer better rates than others.
Check if you qualify for a payday loan in the first place. The general requirements are that you are over 18 years old, that you are a permanent resident and that you have a full time employment in some firm. Since this is a short term loan the lenders need to know that you are a trustworthy person and that you will be able to repay the amount needed by the end of the loan period.
Don’t be greedy, that will only make you lose more money. Think about it and borrow only the amount you need, as in most cases the interest will be around 25%, so you will pay 0.25 cents for each dollar you borrowed. And the last, but the most important thing to think about is whether you can loan that money from someone else, like a family member. Don’t be hasty, payday loans should be your last option.
Payday Loans – Fast Cash?
ISA Tax Bonus Pocketed by Banks
ISA Tax Bonus Pocketed by Banks
Banks and building societies are denying tax benefits to savers and devaluing the ISA brand by paying out more on taxable bonds compared to their fixed-rate ISAs. In some instances, you can earn more in a taxable bond, even after paying tax, than a tax-free ISA.
Banks and building societies are denying tax benefits to savers and devaluing the ISA brand by paying out more on taxable bonds compared to their fixed-rate ISAs. In some instances, you can earn more in a taxable bond, even after paying tax, than a tax-free ISA.
Typically, fixed-rate ISA accounts require savers to tie up their cash for one to two years in return for a fixed-rate of interest. The amount paid in interest is higher than the easy-access equivalents that allow you to withdraw your cash at anytime without penalties. ISAs draw in customers who are attracted with the additional benefits of tax-free savings; unfortunately, some banks are pocketing the tax bonuses and providing customers with a comparatively low interest rate.
A prime example is Lloyds TSB, their fixed-rate ISA pays 2 per cent interest per annum; however, their one-year taxable bond pays 2.2 per cent after tax!
A Lloyds spokesman commented that their ‘fixed-rate bonds are not priced against ISAs, but with other fixed-rate bonds that are on the market’.
The gap between ISA interest rates and taxable bonds widens in the long-term savings market. For example, Halifax pay out 3.5% on a fixed-rate, tax-free ISA but surprisingly pay out 4.1% on a taxable bond.
Chief executive of the TaxPayer’s Alliance, Matthew Elliot stated that ‘this kind of sharp practice threatens to harm ISA as a brand, as well as depriving savers of tax bonuses that should be theirs’.
UK Economy Affects Housing Market
With the UK economy still on the mend, the effects of financial strain have stretched across the nation. While many of these effects are negative, there may be one which benefits many UK citizens. Since the UK’s economic troubles began, house prices and renting prices have been falling. However, many vendors were at first unwilling to offer houses at lower prices. Currently many vendors are offering prices which are down more than 20% from the 2007 peak and sellers may need to go much lower in order to get a sale.
The phrases “buyer’s market” and “renter’s market” are being tossed around since prices plunged 23% between September 2007 and April 2009. However, many owners are still asking prices that are much too high and housing economists admit that the market is still being overvalued. Estate agents are losing their jobs due to lack of sales and only the owners who are willing to accept greatly reduced prices are making sales. Discord exists between the market and asking prices, but better properties are now coming on the market at better prices. Experts suggest that house prices will continue to fall, perhaps even more steeply than last year.
While the housing market is in disarray, the renting market is also going through some changes. Landlords are being forced to drastically lower rent in order to attract and keep tenants. There is currently an over-supply of rental properties and many landlords are left without renters. The outlook is good, however, for renters. The increased volume of the renting market provides excellent fodder for rent negotiation with new or current landlords. Renters have the ability to negotiate lower rents with different landlords and present them to their current landlord. In order to keep their tenants and rent their properties, landlords must accept lower prices.
As price reductions in the housing market continue to cause confusion throughout the UK, economists believe that the problem may not be quickly resolved. Some suggest that increased unemployment rates may force housing prices to drop further over the next year. However, combined with the receding economy, rising unemployment may lead to higher mortgage defaults. While some economists foresee a drop in interest rates over the next year, it is difficult to predict when the UK housing market will hit rock bottom. Until the economy improves, the housing market may not reach a stable point from which to improve.
Corporate Risk – High Financial Leverage Position
Corporate Risk – High Financial Leverage Position
High returns on investment may be a reward of taking high risk; but taking a high risk may not always result in high returns and worst still results in a financial disaster. Whenever, a company overlooks this fundamental rule of business, then it is bound to face severe ramifications. Companies tend to forget the difference between taking a blind risk and a calculated risk.
Following the economic euphoria of low interest rates, corporations over leverage and over extended themselves. The risks taken to over borrowing and leveraging become a nightmare coming true – a systemic financial disaster. The banking and financial institutions are the first to take the hit.
Financial over-leveraging means incurring a huge debt by borrowing funds at a lower rate of interest and utilizing the excess funds in high risk investments in order to maximize returns. Many investment banks and finance companies across the world have over extended their leverage position by 40 to 70 times of their net worth. As the real estate bubble busted, it hurts the balance sheet of the banking institutions through write-downs and impairments and subsequently resulted in a systemic disaster due to loss of confidence in the market. This situation has bankrupted many financial and housing mortgage institutions. Some fortunate ones and those ‘too big to fail’ somehow managed to get bail-out packages from the respective governments of their countries. Many more unfortunate ones will be left by the wayside. This current global recession has made one thing very clear – the old rules of corporate risk have to change.
If we closely analyze the underlining factor for this systemic failure, then we can form a logical conclusion, that there was a strategic failure in the risk management planning of these companies. Some of the most famous corporate giants of the world would not have collapsed if they have earlier effectively managed the financial risks associated with their businesses. During this difficult time, the best strategy is ‘consolidation’ and ‘corporate turnaround’.
No one can exactly predict when the global economy will recover. But one thing is very clear – we need to change the old rules of corporate risk management. In future, companies need to be wary of over leverage and ‘living beyond their means’.
Money, Children and Expensive Gadgets
Christmas can be such a difficult time for those of you who have promised the earth for your loved ones in buying gifts and presents. Many people simply cannot afford to purchase the various things their children ones need and this can cause untold stress and anxiety for some.
The reason for this is because people feel they need to respond to advertisers demands and get just what they promote. Children are bombarded on a daily basis with subliminal adverts to got certain products that emenate from the television day in and day out. Advertisers are indeed canny and they are able to target children at key times. The children then ask their parents over and over again to get what the advertisers have told them they need.
The simple solution to this is to reduce the amount of TV that the children are exposed to. This will then reduce their need to be exposed to hours of mindless adverts from ruthless toy companies and the advertising agencies. Try and spend quality time with your children and engage in activites that do not cost money – many children prefer to spend time interacting with parents and carers and not just be bought expensive gadgets.
Money does not buy happiness and children are not truly happy at just having lots of toys. We all need some gadgets in our lives but do not succomb to the advertisers demands!
Why use Credit Unions
There are many banks and institutions available for you to save, bank and invest money into. But many people do not know much about what a credit union is, and therefore do not use them. A credit union is a banking institution that is owned by the members. This means that as a member of a credit union, your money stays locally and does not go to a headquartered area, is not spent paying CEO bonuses, and is actually used in the community in which it resides and does business. 
Credit unions offer perks that some other banks do not offer. Some credit unions help with discounts on vehicle rentals for all of their members at specific retailers, while others may offer lower interest rates for members on loans. Becoming a member of a credit union in the United Kingdom is not a hard task either.
Once you find a local credit union that you are interested in becoming a member of, simply stop into the branch and ask about the requirements for membership. Many will require that you have cash on hand to start a new account. You can open a checking, savings or IRA account on the spot in most areas. Credit unions generally have you to fill out an application, and it is either approved or disapproved within a few minutes. You would be told then, the reason for the disapproval.
After being approved, this bank is like any other bank you would use. You can deposit, transfer, withdraw any money in your accounts. But some credit unions even offer discounts and special accounts for persons that are members of a local union. So if you are a member of a local union, be sure to tell the bank personnel prior to opening an account. You may get a free account that requires no start up cash, and has a higher interest rate on savings accounts.