Things To Consider Before Lending

If you are reading this post, I assume you have an amount of money in store and you are considering lending it out as a form of instalment loans or perhaps any other kind. The thing is lending is quite a lucrative business based on the fact that for every penny you lend, you will be expecting a return on each of the penny in form of interest. It should be noted that whatever cash you will be lending to people must be your extra amount plus the fact that you won’t be needing it urgently. Lending is quite risky due to the fact that many borrow and fails to pay back as at when due. Nevertheless, the risk is worth it and there is absolutely no way you will be losing your money unless you are not smart with it. This article tries to posit a few things to consider before lending money:

Consider Before Lending

Know your borrower

            It is very important to know the financial and mental status of your borrower based on the fact that if he’s financially unstable, you risk losing your money and if he’s mentally unstable, you are definitely going to lose your money. As such it is very important to ask necessary questions such as income weekly, monthly and per annum, Also in the course of the discussion, it is very important to pay attention to your potential borrower’s response to answers in order to be able to evaluate his mental status. Alternatively, you could request for last mental evaluation amidst the documents you’ll be requesting (although, many see this offensive).  In addition, be sure that your borrower is capable enough to payback with interest of whatever amount he/she will be borrowing from you.

Consider your interest rate

Interest rate is the amount paid together with the initially loaned amount. In most cases, it is a notable percentage of the initial amount borrowed from you as a lender. When considering lending, it is very important to have a certain percentage of posited for your borrowers and clearly state the percentage clearly in the agreement form. Most times, interest rates are sometimes between 10% to 20% of the amount borrowed. Bottom line is that carefully consider the amount requested and fix the interest rate at an amount you feel is credible enough for such lent money. Most times, instalment loans attract high-interest rates (it all depends on you).

Mode of payment

            It is quite pertinent to posit in the contract agreement, the means via which payment will be made, probably via open check, bank transfer, deposit or perhaps via the debt collector agency. It is very important that this criterion is clearly spelled in order to avoid cumbersome situations when payment time is up. Under several circumstance, when mode of payment isn’t clearly stated the possible outcome is that; you as a lender wouldn’t the mode of payment to anticipate plus the fact that there will be no written evidence stating a particular mode of payment and you are bound to lose a particular court proceeding peradventure a court issue ensues between you and your borrower.

Period of payment

It is a given that loan refund is at intervals, whether weekly, bi-weekly, monthly or yearly is all based on the lender’s discretion. Beyond reasonable doubt, every lender must have a particular focus as to when in particular a proportion or perhaps the whole payment with interest would be made. Many lenders make the mistake of not clearly spelling when the whole payment will be made as such when the borrow didn’t come to terms with the payment agreement term due to oblivion, problems will begin to ensue. As such as a lender, it is very important you strategically consider the period you need your payment made.

Personal interest

            Although unforeseen circumstance may arise which will, therefore, warrant that you make use of your cash, well, irrespective of unforeseen circumstances which you’ll definitely tackle later, deal with the present. Before lending out cash, be very sure you won’t be needing the cash to carry out personal or business task. It is very important to carefully look through your plans and be sure you won’t be needing the money anytime soon, Once this criterion has been fulfilled and you found out there is no other thing left, go ahead and lend out your money.

Financial Regulators: Who Are They and What They Do

Financial regulators standardize the industry of financial services which include exchanges, markets, and firms. Usually, they work for government bodies or independent standard firms to make sure financial services meet business/industry-specific regulations.

Financial regulators are able to work in different sectors to make sure financial service agencies are compliant with the financial regulations and law as well. Also, they provide information to consumers to keep them safe and sound from improper practices.

Financial Regulators

Business plan image with collage hand drawings

State and federal governments have a myriad of organizations in place which regulates and supervise companies and financial markets. These firms each have a specific array of responsibilities and duties which allow them to act independently of each other while they work to achieve similar objectives. Even if opinions differ on the effectiveness, efficiency and the need for most of these agencies, each was made with specific objectives and will most likely be around for some time. Here are some of the most popular and renowned financial regulators:

  • Federal Reserve Board

One of the most known of all the financial regulators, the FED often gets blamed for financial downfalls or heralded for stimulating the financial system. It is accountable for liquidity, influencing money and credit conditions. Its major tools for implementing fiscal policy are its open market operation that controls the acquisition and sale of U.S Treasury securities as well as federal agency securities.

  • Federal Deposit Insurance Corporation

FDIC was developed in 1993 to give insurance on deposits to assure the security of saving and checking deposit at banks. Its authorization is to protect up to USD250,000 for every deposit.

  • Office of the Comptroller of the Currency

OCC was created by National Currency Act in 1863 with the sole purpose of supervising, regulating as well as giving charters to banks that operate in the United States in order to make sure the reliability of the overall banking system.

  • Commodity Futures Trading Commission

CFTC or Commodity Futures Trading Commission was developed in the year 1974 as an independent body to regulate commodity futures as well as options market as well as to give for efficient and competitive market trading. This financial regulator also seeks to keep participants from market manipulation, fraud as well as investigates trading practices and sustains fluid processes for clearing. If you are into forex trading, ensure to deal with the best and reliable brokers overseen by a government regulator like CFTC.

All of these financial regulators seek to protect and regulate those who participate in their respective businesses or industries they rule. The areas of coverage most of the time overlap, however, while their guiding principles might differ, federal agencies normally take over from state agencies. But, this doesn’t mean that state firms wield less power because their jobs and authorities are far-reaching.

Conclusion

In general, financial regulators make sure that the company or the broker is legit and reliable and your money is safe as well as securely protected. However, certain credible financial regulators burden participants of the said market with lots of trading restrictions.

What is the Difference Between An Overdraft Facility and A Personal Loan?

Are you still confused which one would you prefer between overdraft facility and a personal loan? Then, it is better for you to learn first the essential difference between the two for you to decide which one is a better option.

Here, you will be able to discover what really overdraft and personal loan are. Also, you will know the difference of each from one another.

Overdraft Facility and A Personal Loan

What is an Overdraft?

An overdraft refers to the agreed variable amount of borrowing with your bank up in setting a limit. It is considered to be a great option when you are with short-term financial requirements, including the equipment purchases or operating expenses. Here, you are given a chance to repay the borrowed amount quickly. Also, you are only obligated to pay the money you borrowed.

Furthermore, an overdraft can be considered as a facility where you can have the ability to withdraw or avail a particular limited amount as an overdraft from your account. This will be based on your bank transactions and eligibility and is fixed by the bank.

Personal Loano

What is A Personal Loan?

A personal loan is a type of loan having fixed terms with repayment schedules. So, you have the opportunity to plan expenditure as well as cash flow making it less flexible compared to overdraft.

Through personal loans, you can borrow a more substantial amount of money. This means that they can be a better choice for long term purchases with high value. On the other hand, if you fail to pay back the loan or you miss a payment, chances are you can encounter financial troubles and damage your credit ratings.

In a personal loan, the repayment is typically made upfront in installations or one go. Then, the interest rate is defined as per a loan. You are obligated to repay the borrowed amount per monthly EMIs based on the loan tenure as well as terms and conditions.

What are The Significant Differences?

When you consider applying for a personal loan, the bank will credit the amount to your account. Once that the amount is disbursed, a levy of interest will start immediately. Meaning, whether you used the money or not, you are required to pay the entire amount’s interest.

In case that you choose an overdraft option, you are not required to pay the interest not until you withdraw the money. The interest will be charged according to the used amount the same with a credit card where the charged interest is based on the entire limit.

When short-term financial requirements are involved, it is better for you to choose overdraft than the personal loan. However, if you feel that you will need more funds and more time required to repay, it is recommended to convert into a personal loan.

To help you decide, always consider a personal loan when you require for higher purchase value while preferring an overdraft facility if you are in need of short-term operating expenses.

6 Quick Ways To Save In The New Year

When you are living paycheck to paycheck, the idea of ever saving any money may seem nearly impossible. However, there are a few things that you can do to save money. When it comes to saving, every little bit adds up. By saving even small amounts, you will find yourself with more money at the end of the week or month and before you know it, your savings will begin to increase.

Quick Ways To Save

Here are 6 very simple steps that you can take to start saving money quickly:

  1. Set up automatic bill payments

With busy schedules, it is very easy to forget to pay some of your bills on time. By paying your bills when they are due, you will save yourself money by not having late fees. Most companies charge anywhere from 10% to 15%. While this may seem like a very small savings, it will certainly add up quickly with minimal effort.

Setting up automatic payments can ensure that you pay your bills on time and avoid late payments altogether. A word of caution is to keep up with your bank account balance in order to avoid overdrafts and fees.

  1. Consider switching banks

All banks make their money from fees of one sort or another. Three of the top banks earned upwards of $6.4 billion in ATM and overdraft fees last year. If you are paying a monthly fee for either a checking or savings account, then you should look for a new bank. There are many banks that offer free accounts and perks just for opening a new account.

  1. Open a short-term CD

If you are in a position where you can comfortable afford to leave your money in a CD for up to a year, then a short-term CD is a good idea for you. You will want to shop around and find the highest paying yield before you invest in a short-term CD. If you think that you will need the money before the year is up, it is best to put your money into savings instead in order to avoid a penalty for early withdrawal.

  1. Sign up for loyalty programs

By signing up for rewards and loyalty programs, you can reap great rewards for the everyday things that you do such as grocery shopping and buying gas. Make sure you sign up for emails as that is often a way that they reach out to customers. Many stores also offer apps now and that is another great way to keep up with savings options.

  1. Buy with cash rather than credit

By taking cash with you when you shop, you can avoid overspending. If you are paying with a credit card, you are not limiting yourself and will end up spending more than intended on needless items.

  1. Avoid paying for convenience

America, as a whole, has gotten into the habit of paying for convenience. Rather than make things at home, such as coffee, we make the purchases while we are out resulting in spending much more than we should. Taking time to do things at home will save you a tremendous amount in the long run.

  1. Use coupons

Whenever you make a purchase, make sure you use coupons and coupon codes. Whether you’re shopping for groceries or buying things online. Use sites like https://www.yourbestdeals.com/ to get discounts on anything from socks to computer software.

Clothing Stores You’d Never Knew Had College Student Discounts

student clothes discount

Are you looking for clothing stores where you can avail discounts? As a college student, the struggle is very real when we talk about the money. Hence, it is very hard for you to purchase the stuff you really need, particularly new clothes. After all, you should get some sort of discount after paying so much for your school!

However, fret no more! In this post, we will provide you with top clothing stores that offer a discount to college students. Are you now ready? Let’s dive in!

  • TurboTax

TurboTax for college students: If you’re a student and attended at least one course last year, you might qualify for significant student tax breaks.”

“Lucky for you, TurboTax specializes in helping students get their maximum tax refund. We have a great student discount, or for students with simple taxes, you might even be able to file free!”

  • AMERICAN EAGLE

This sought-after store offers 5% cash back on all purchases along with a student discount. All you need to do is to sign up for StudentRate.com, and you’ll receive free shipping with any purchase worth more than $50. Isn’t that amazing?

 

  • DOCKERS

Dockers is an online store, but once you sign up for them, college students receive a 20% discount instantly!

 

  • THE LIMITED

This store has many branches all around the country. If you want that internship look, this store will get you that along with a 15% student discount!

 

  • CREW

This unique and classic accessory, shoe, and clothing store will offer college student quirky looks all year round with a 15 percent discount.

 

  • ANN TAYLOR

Catered for women only, Ann Taylor is a clothing store that offers female college students with 15% student discount.

 

  • TOPSHOP

What’s more, Topshop is a store which features some of the best women’s fashion trend and even features Kylie and Kendall Jenner’s swim collection. So, if you are into that, grab your college student ID and go to their store to receive 10% off online and in stores.

 

  • BANANA REPUBLIC

The Banana Republic offers 15% college student discount on full-priced purchases.

 

  • KATE SPADE

Get a 15% discount off full-priced products every time you shop in a Kate Spade store.

 

  • MADEWELL

In this store, college students aren’t only the ones who are privileged with 15% discounts. Teachers also can take advantage of their 15% off in-store purchases.

  • H&M

Take advantage of all the trendy and sophisticated accessories, shoes, and clothing your wardrobe can hold at H&M’s 15% discount.

 

  • CLUB MONACO

Whether you shop online or in-store, Club Monaco will offer you 15% off on both sale-price and full-price purchase.

 

  • BOOHOO

Shop and purchase at Boohoo and take advantage of their 10% full-priced or off sale items.

 

  • LEVI’S

If you want to receive discounts from this sought-after clothing brand, all you need to do is to sign up with email, and you will get free shipping and a 20% off on your first online order. But wait, there’s more! You’ll also get a 15% discount after that. What do you think?

 

  • MEDELITA

All your pre-med university out there can receive 15 percent discount scrubs along with college student discount by Medelita.

 

  • TOMS

Want to change that old pair of shoes of yours for a discounted price? Steve Madden offers 10 percent cash back on shoes, and for each pair you purchase will be given to a kid in need. You don’t only get discounts; you’ve also helped someone with your purchase.

With this stores that offers college student discount, you can surely get brand new items which doesn’t break your bank. What are you waiting for? Shop now!