Category Archives: Loans

Don’t Treat Your Finance Like a Casino

So many people treat their finance like a casino and gamble on way too many things that often end up like a casino bet, going to the house! Not only is proper financial planning required, but also the necessity to reduce any and all risk whenever possible. Gambling with your own money, or at least on a large scale is not advisable for long term financial security.

If you like to play around with the stock market, then always remember that this is financial gambling as well, so only do this with money you can spare, and not money that you could put away for a safer investment. Yes, of course the stocks can pay off, and pay off big when you get it right, but they can also drain your funds and savings very quickly if you get it wrong.

Also, if you want to play around in the stock market, you have to know what you are doing. You can’t just go in there with your eyes partially closed and expect to come out a winner. It does not work like that, but still people go in with this blind approach, and they quickly get gobbled up by the markets and spat out again with an empty wallet.

You need to set the majority of your wealth up in a secure way that will make you money over time without being exposed to the clear and present perils of the high-risk stock markets present. A lot of time people learn from experience and by getting burned. This is okay, as long as you do not get burned too badly the first time around. It is always good for people to see the risk of playing the markets, so losing out the first time can actually be a good thing for your long term outlook.

The Importance of a Credit Report

Credit Report

Credit Report

You may think that as long as you pay your monthly bills on time (or even a few days afterward) and don’t rack up a huge debt, there’s no need to check your credit report. However, you shouldn’t only check your credit report when you’re trying to buy a car, get a loan, or make any other major purchase with credit. Many credit reporting services, such as creditreport760.com, recommend that you check your credit at least once a year in order to ensure that the information on the report is factual and that there’s no delinquent charges that you don’t recognize.

What a Bad Credit Report Can Affect

Not knowing what is on your credit report and failing to clean up even small mobile charges can have a negative impact on your ability to get a loan when you need it the most. Landlords check your credit report when you apply for a rental because they want to know whether or not you’re a dependable person. This is why it’s important to pay your bills a day before they are due. Late payments are listed on your credit report, which may cause you to be turned away by a landlord if he or she believes you won’t pay on time.

Fraudulent Charges

It’s important that you check your credit report once a year to ensure that you haven’t fallen victim to identity theft or credit card fraud. This is especially important if you shop online, as someone could obtain your credit card number digitally and rack up thousands of dollars of credit card debt before you’re even aware of it. Obtaining a copy of your report and ensuring that you recognize all of the charges and data it contains will save you a great deal of time and heartache later on down the road.

Negotiating with the “Enemy”

Creditors

Creditors

Many consumers don’t realise it, but the information provided to a credit agency from a creditor is completely the decision of that creditor. For example, a creditor is under no obligation to report either positive or negative information. This means you have the potential to negotiate with creditors in terms of the information they give to credit agencies. So make sure when applying for a loan in Australia you read carefully the Privacy Policy section.

Many consumers don’t understand this concept, and rather than working with creditors to create manageable payments, instead opt to make no payments at all. It’s not like casino gambling, this needs to be planned very carefully.

The first step to successful negotiation is to always take calls from creditors. When their calls are ignored, they’re likely going to assume you’re not going to pay your debts, and they may pursue further action. By maintaining communication, you can send the signal that you’re willing to pay, which will make them more receptive to negotiation in many circumstances.

When you begin the negotiation process, it’s also important to know how much you’re going to be able to realistically pay. Create a budget before attempting to negotiate, so that you don’t overextend yourself in the process. Knowing what you can afford will give you a good starting point to work with creditors.

Don’t go into the negotiation process thinking anything is going to be unacceptable. Many creditors just want some form of payment, so this may end up being only 50 or 70 percent of the original debt, and this can often be paid through either a lump sum or a payment plan.

It’s also important to understand exactly what a creditor is saying, and get all agreements in writing. Many creditors will try to intimidate the consumer with legal jargon, or create unreasonable payment plans, so combat this by taking the time to listen and comprehend what’s being offered, and then, once an agreement is reached, asked for all the details in written documentation.