Author: Dennis Marcel

How Can Students Benefit From A Loan?

Banks usually provide customized loan services to trustworthy customers.

Unlike payday loans, getting a bank loan is pretty tricky and complicated. Still, when you maintain a good credit rating, banks consider your creditworthiness and offer you the loan quickly.

However, this does not add any value when it comes to a student loan.

How Do Student Loans Work?

In major American and European countries, students are enjoying free education until they complete their high school. Nevertheless, things change drastically when they complete their schoolings.

Expenses for university and graduate schools are not covered by the government. And the expense is not a mere amount rather a real nightmare figure. Most people cannot afford to pay for the cost of higher studies out of their savings or income.

For those people, student loans are a really good option to avoid problems down on the road.

In the first place, you need to understand what the student loan is meant for and for what purpose you need to use the student loan

Pay For Tuition Fees

You can get up to $40,000 to help cover your post-secondary education costs.

The basic qualification for getting the student loan is, you should attend any accredited university, community college, trade or vocational schools. It is immaterial what degree are you pursuing rather depends only on the institution.

Housing Expenses

Student loans are not only meant to pay for the education cost rather involves living expenses. When you live in a student hostel or an off-campus apartment, you can make use of the student loan to pay for your accommodation.

One of the main advantages of student loan is, it need not be repaid until a few months after graduation. Therefore this is very much useful in meeting their financial needs.

Transportation

In many regions living off-campus works out to be cheaper than living inside the campus, so the student often prefers to hire accommodation outside the college campus.

However, the problem involved in renting off-campus is commuting. Apparently, student loans cover all the travel and miscellaneous expenses.

For example, the cost involved commuting to the university like the public transit fares, purchase a bus pass, gas expenses, parking pass and to fund other types of transportation you need.

In addition, it also includes the flight fare to commute to home during vacations and long breaks.

Meals

Meal plans are pretty expensive in colleges, although you prefer to go for the basic meal plan yet on an average, you should be prepared to spend about 7 to 10 dollars a day which is not affordable for the students.

However, the student loan covers the meal plan and other food expenses that the students use on the campus.

Purchase School Supplies

The typical cost of the graduate school textbook is around 200 to 400 dollars. Managing the cost of the textbook is not a fairly easy option.

Apparently, student loan provides them with an opportunity of buying textbooks when you cannot afford to spend from your pocket.

The most fortunate thing is, both federal and private loans can be used to cover textbook purchases.

But there are few things that are found prohibitive to be utilized with student loans. The office of federation student aid states that student loans should be used to cover the above-said expenses.

However, many people knowing the fact that nobody is watching their bank account to track down the expenses made with a student loan, they have started misusing the loans. Let us list a few things which should not be used with student loans:

  • Travel
  • Clothes
  • Partying with friends
  • Buying accessories for your student room

Although it is a smart and wise decision of the parent and student to take an insignificant debt to earn an academic degree, yet there are few things to be considered before you take a student loan

What Should You Know Before Taking A Student Loan?

  1. The loan you choose should be either private or federal- While different loans come with different terms and conditions, student loans comes only as a private loan or federal loan. Private loans are ones that are provided by individual companies or banks however federal loans are the ones funded directly by the government at a relative better interest rate
  2. Understand the terms of payment. If you agree for shorter repayment time, your principal will be higher however for the longer repayment time it is the vice versa.
  3. Make sure you know about the duration of the grace period
  4. The final thought is to determine whether you will require the loan.

Conclusion

The main worry of every parent when the child enters the college is the financial aid.

College fees have become an expensive affair, however, if you can manage the expenses without the loan, it is great but when it is not manageable, make use of the student loan and meet your child’s need.

Advantages And Disadvantages Of Loans

Borrowing and lending have become a commonality in business these days, and this process is usually achieved with the help of bank loans. There are plenty of loan types and banking options to meet your personal as well as business needs.

For example, when you are planning to start up a business or expand your operations, you will be in need of funds. When you don’t have enough investments, it becomes impossible to make your next step. However, the availability of bank loans acts as a supportive structure to uplift your life when you are stuck with financial problems.

Bank loans will help you to meet your financial needs; however, you need to make yourself eligible for the loan and should have the determination in handling the pressure of the loan payments over a longer period. When you are sure that loan is the only option, then banks will definitely help you to benefit from the loans to achieve your goals in life.

Buying a bank loan can be both advantageous as well as disadvantageous. So, let us first see what are the advantages it has to offer?

Bank Loan Advantages

Loans Can Help You Save Money On Taxes

Some unsecured loans like personal loans, which individuals take at their discretion or to consolidate other debts are not taxable. The reason because personal loans are not regarded as part of your income when you are filing IT returns. The only criteria are, the loan should have been taken from a valid source like banks or the educational sector and not from any unknown sources or individuals.

Great Piece Of Flexibility

One of the greatest advantages of loans in public sectors and banks is due to its flexibility. The flexible terms of the loans enable the borrower to repay on a long term with fair interest prices. In fact, some loans have more flexible options like

  • Allowing Overpayments – When you have some extra money, you can pay a lump sum and decrease the term of loans
  • Pre- Payments – Some people want to get rid of the loans instantly at one shot, so they make total payment and make the closure. This is called early payment. Some lenders accept this option without charges whereas many lenders generally make a prepayment penalty for early closing.
  • Payment Holidays – When the borrower is in a bad financial condition and not able to make the installments, some lender allows for a break for some time and later allow him/her to continue making the payments. However, this involves some additional fee when you take a break from the payments.

A Smart, Cost-Effective Option

Debt can be good at times rather than losing the opportunity. If the opportunity is worth considering, then you should take funds from the banks. Bank loans open the door for your growth and success. In fact, when you are going for funds from unknown sources or private people, their interest rates are killing, although they offer loans with less criteria. However banks loans are a straightforward process, so you are completely secure, and there is no place for getting cheated. In addition, they offer loans for appealing interest rates, so your life will not be in the struggle when you are repaying the loans.

No Demand For Term Loans

Unless you violate the terms and conditions of the bank norms, banks will not demand you to repay the loans early, and rather you will have a sufficient period of three to ten years to repay your debts. Another big advantage is, at the time of signing your loan, you can request for a repayment holiday. When you are eligible for a repayment holiday, you can freeze your capital for a certain period of time, and you would require only to repay the interest during the course of time.

Disadvantages Of Loans

Higher Interest Rates For Small Loans

Banks usually offer small scale business loans with a higher interest rate. In addition, the loan amount offered is not sufficient to meet the financial needs of the company.

Strict Requirement

Subsidized bank loan requirements are very strict to make the borrower eligible for the loans. The borrower has to satisfy various requirements to meet the loan eligibility criteria.

Loan Burden During Repayment

Managing your debt situation often stress yourself and certainly impact the money in your wallet. Unless you follow the debt avalanche (clearing the smaller loans and moving towards bigger loans) your financial standards will be under pressure. You cannot enjoy your life at peace, and this often would result in an emotional imbalance.

Closing Thoughts

It is a rather a good idea to go for loans to meet your financial expenses but ensure that you don’t misuse your funds in an improper way and later regret your decisions. Though it has a few drawbacks, yet it always remained a solid source for consumers and entrepreneurs.

6 Financial Tips For Young Adults

Few financial tips for young adults that will be sure to help you along the way.Don’t wait to save and invest. Saving and investing may seem like a challenge right now, but putting away just a few dollars a week can have a big impact.Save one-third of your income.Start an emergency fund.Pay off your debt.

Basics Of Personal Finance Management- A Complete Overview

Personal finance is all about managing your income and taking control of your personal finance. When you have a better understanding of the basics of personal finance management, you will know how to make the most money with minimal risk. But what are the basics of Personal Finance Management?

Personal Finance Management – The Top Core basics

Personal Finance Management is an intimidating and tiring task that cause even the savviest individual to become more chaotic and puzzled. We live in the most turbulent economy, where budgets and finances are fluctuating in the most fast-paced manner, so people are moving towards the technology to make things easier and to manage their money. However, this is becoming more trickier than before.  To handle these situations and to manage your funds most smartly, you need some awareness and strategic thinking.

In order to achieve this, you will require some tips which you can put to use right from this day. You need not earn a six digit income or be a successful entrepreneur to learn these basics. However, when you want to achieve your financial objectives, you should learn this.

Budgeting

When you are a beginner to personal finance or a freshman to budgeting, in the first place you should know what is all about? The need for this concept and how much value it has in managing your finances.  Budgeting is basically designing a plan or a flowchart to use your investments.

When you have the right budget and organize your finances, you are in the stepping stone of accruing wealth. The expenses all you make, like the credit card transactions, loan types if any, savings plan, retirement plan should be tracked. You can either hire an accredited public accountant or install the best finance map, if you are time constraint and not confident with yourself.

Slash Your Expenditure

Everyone, be it a company or an individual try to be cost-effective to save money. When it comes to organizations, they generally try to minimize costs on functionalities like invoicing, collections, purchasing and reporting. You cannot achieve this unless you maintain tight control over fixed and variable costs. In fact, fixed costs are the real pain to most businesses. Apparently, there are certain recommendations that have better results in controlling expenses

  • Design a strategy
  • Monitor expenses in the smartest way
  • Establish metrics that add value to your business
  • Manage fixed and variable cost on your business. Especially follow a tougher guideline when it comes to fixed cost
  • March towards technology which will make your life way more easier and save your expenses considerably
  • Encourage your employees by providing benefits, which will make them work more efficiently that eventually improve the bottom line of your company.

Getting Rid Of Your Debts

Although designing a well-organized budget and slashing your unnecessary expenses might bring in some piece of relief for you, but when you are in the midst of debts, the situation doesn’t sound wonderful. When you have either a small term or long term debts, you can buy in some loans to try to get rid of it as early as possible. Apparently when you don’t have space in your budget, then it could be tricky, and you would be tangled in trouble.  But the best suggestion is to get out of high-interest debts at the earliest which usually causes more pain to your financial standards.

Never Quit Learning

Budgeting software is basically associated with heaps of studies, so unless you have the collective knowledge of this stuff, you cannot be an achiever. You cannot move forward towards your goal. Some people think they are financially illiterate and isolate themselves but realize that you are not alone. There are hundreds and thousands of people on the list who have struggled in managing finances and reducing debts. But, if you have to will to overcome, you can do it definitely. This is generally accomplished by updating your knowledge by reading a vast number of research books and journals. In addition, you can even listen to the advice and suggestions of the professionals and gather a plethora of information through these aspects

Saving For Retirement

Pension plans are not offered by all the companies, and there are only fewer companies who are adopting this strategy.  So, life becomes uncertain for people after retirement when they don’t have sufficient funds. Rather than to regret in the later years, it is wise to think early. Retirement savings have to be kept in priority, it not only secures your future rather save you a lot of money during tax filings. Although you have not started it, ensure that you start early in the upcoming financial year.

Closing Thoughts

Increase the amount of money you save in good times, and this will definitely help you handle the situation that is unforeseen. Perhaps this will add more security when you are stuck with financial burdens.

Best Financial Software For Personal Use

Personal finance software is designed to help businesses or entrepreneurs to manage their finances and business ledgers. The main objective of this software is to integrate all your financial data in one program. With the help of the personal finance software, you can keep track of your investments and enable you to formulate a successful budget.

Best Personal Finance Software

Gone were the days when you could tell how much expenses you incurred by looking at the expenditure detail notebook or your organizer, similarly you no longer required to know your account balance by either checking the money in your bank account or in your wallet. Things have changed now, and technology have advanced, there are many websites that handle personal finances exceedingly well.

In the recent ages where business are run in the most competitive phase, the business owners often lead a very nerve-wracking agenda, so they often have very less time to spend on the things they wanted to do. However, when you have your own personal finance software, it can provide a plethora of benefits like

  • Avoid late payments
  • Smart and structured business planning
  • Handles tax in the coolest way, so no more concerns during tax filings
  • Easy accessibility to pay your bills through their online mode
  • Fast and stress-free account reconciliation
  • Maintain and keep a record of your investments
  • Sustain your credit score by getting alerts on making payments
  • Sidestep financial errors

Let us see a few outstanding personal finance software to suit a variety of financial goals. While some of the software is available for free, there is also software which requires fees.

Quicken – To Live Your Best Financial Life

When you want to plan for your present and the future to handle your finances, Quicken is the best personal finance management tool that offers the breadth and depth of your financial needs. This personal finance software is known for its security, a wonderful innovation that offers complete protection to your financial information. Millions of users trust this software for security purposes.

The main objective of the software is to keep your information safe with robust 256-bit encryption. The best part of this software is, it is available for free so it can be your best companion as a personal finance manager. Another appealing feature of Quicken is, it shows great functionalities in accounting, so can be used as a small business accounting package.

Mint – Best For Budget Tracking And Planning

When you want to have a better perception of your spending, personal finance software Mint has no match. It sidesteps all other software when it comes to budget tracking and planning. Perhaps, the best budgeting software to help you understand your budget in order to have a bright financial future.

This software is web-based personal financial management service available in North American and American countries and is available for free.  When you want to manage your money in the most effortless way all under one roof, Mint is the best option for you. It offers great financial opportunities, so millions of customers benefit from this app.

YNAB- The Best Personal Budgeting Software

Gaining a financial literacy is often a complicated process for most graduate students, but when your software could manage that part and help you in attaining it, won’t it be wonderful. YNAB is one such software that aims to help you improve your financial literacy. A personal finance software based on envelope method that is available for free to the college students. It provides strong financial budgeting features with which you can create a budget and track your expenses. YNAB latest version is an online service, so you can sync with your bank accounts and monitor your income and expenses.

Albert – Best App To Automate Your Finances

For those individuals, who often face challenges to make some space in their budget and desperately looking for some good financial advice, the new type of financial software, Albert is a real boon. This software uses powerful technology to automate your finances. The concept behind this technology involves using mathematical equation, and real human advises on investments and helps you to make great savings. Although there is plenty of personal finance software in the market, yet Albert provides several high-end snapshots of expenses and suggest tips to save money to have a brighter financial future. A great tool for the starters who have problems designing their budget, this mobile app automatically creates a budget based on your expenditures, bills, and income.

Closing Thoughts

Managing all your accounts under one roof is generally tricky and most confusing. However, these advanced personal finance software offers wonderful support. You can pull in your transactions and view your accounts in the midst of over 15000 online banks all across the world. So make your life further organized with the help of this software.

Explaining The Different Types Of Loans

According to a marketing report, almost close to 50 percent of American families spend money than actually, they can afford to. The society has turned most people to make expenditures beyond their financial standards. In the current ages, everyone wants to own a beautiful home, a luxurious vehicle and others stuff to enjoy their life to the fullest. For all investments you need a lot of money, so how? Here comes the place of loans.

Different Types Of Loans – Which Best Fits Your Needs

Bank loans are available to finance the purchase of inventory as well to obtain capital for the business. In order to choose the best loans that fits your need, first of all, you need to know about the different types of loans and figure out which one can be the best for you.

On a general scale, consumers take a loan to finance home purchases, to fund educational fees, debt consolidation and for other personal expenses. Similarly, when it comes to business, entrepreneurs and business professionals take loans to purchase real estate and to expand their services, for the purchase of equipment and machinery, inventory, to build their working capital and many more. So let us discuss the different types of loans and help you choose the best option.

  • Consumer loans
  • Business loans

Consumer Loans:

This is a secured or unsecured loan generally taken by the consumer either from a bank or a financial sector for family, personal or household purposes. Consumer loans are categorized into

  • Mortgages – Simply speaking, the mortgage is a legal agreement in which the property is backed as collateral for the repayment of the loan for the exchange of funds. This loan is often repaid on an installment basis over a period of years until the property is made free and clear by the owner. This involves not only the repayment of funds rather in addition to that, but you will also be required to pay the applicable interest rates and some minimal fee.
  • Credit Cards– The basic purpose of the credit card is to pay for the purchase when you don’t have cash in hand. This is a kind of loan you borrow when you make the purchase. Apparently, this money should be paid off at a later date. People often use it for convenience, security, to keep track of their expenses and to improve their credit scores by repaying on time. Typically the credit cards have an interest rate between 19% and 25% in major North American countries
  • Auto Loans– The main objective of auto loans is to purchase a motor vehicle. This is much similar to personal loans, but the only difference is, it is mainly for the purchase of the automobile. With the vast developments in technology, banking sectors are of no exception. So, you can make use of the auto loan calculator, feed in the required details like the vehicle price, down payment and interest rate, and then this algorithm will tell you the estimated payment.
  • Student loans– Students loans are used to pay for the universities or graduate school predominantly. The loan is a borrowed money which is repaid over the time plus interest. However when you are intended to go for this loan, check for the scholarships and grants initially because these aspects waive a certain percentage of money.
  • Personal loans– Personal loans are general purpose loans with which you can use it at your discretion. Some loans usually come with higher interest rates say over 6%; however, personal loans can be obtained at comparatively lower interest rates, and this loan will help you to repay the other loans faster. Personal loans are majorly used to pay off your debt consolidation. These loans are purely offered on the basis of credit history to determine the ability to repay the loan.

Business Loans

Business generally requires an adequate amount of capital to fund startup expenses or pay for expansions. Bank offers financing and loans for aspiring entrepreneurs to protect their cash flow and help to grow their business. One of the main advantages of the business loans is, when the person gets the loan for his business, the loan is lent to the corporate entity so when the business fails, the business owner need not repay the loan. However, the business is liquidated to take back part of the funds borrowed. In addition to this, business loans offer tax benefits to the company, so the small business owners can get some relief from tax.

Closing Thoughts

Whenever you have decided to borrow money either to meet your financial or business needs, make certain you have understood to the agreements carefully. Make yourself familiar with the repayment options and terms involved. When you are stuck at some point, don’t hesitate to make clarifications. Think ahead than later regret about your decisions.

 

 

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