Posts Tagged ‘Loan’
NOT that bad debt forever. According to Suze Orman, author of the book Women & Money: Owning the Power to Control Your Destiny, several types of debt can be categorized as a good loan.
”Debt itself is not bad. The problem is how do you handle it. If you care about children, you should start caring about money. I would not be surprised if they eventually run into financial disaster because you give examples of wrong.”
According to Orman, parents who are unable to properly manage the family finances would have difficulty financing their children’s education. In addition, in the old days they could also be troublesome because the child has no savings for retirement.
Good vs. bad credit loan
Orman explains, the difference between good loans and bad loans is how it affects your ability to achieve financial goals. A good loan can help you achieve your financial goals, while bad loans will only bring financial problems.
”Knowing the difference between good loans and bad loans is key to achieving financial well-being,”said Orman.
Which include both loans to buy assets such as loans, like home or a mortgage, education or student loans, medical loans, as well as business debt. Meanwhile, a bad loan is an amount of money borrowed to finance the desire or depreciating assets like cars, credit card accounts, home equity, and so forth.
According to be categorized as a good loan, a loan must meet the following conditions:
1. Debt should be limited, without the ability to continue to increase. Meanwhile, revolving accounts like credit cards is the opposite.
2. The interest rate debt should be stable, at a reasonable and predictable.
3. Debt should have a number of regular payments that can be managed within budget and on time to avoid late payment penalties and penalty interest rate increases.
4. Debt has a purpose that is considered reasonable by most people.
5. Debt was issued for behalves something like buying a home or invest.
HELP by lending money to someone who is experiencing financial difficulties, it is good. Moreover, if the person is a relative or close friend of our own. However, if good intentions are actually misused – for example the person has refused to make payments – then what to do?
Lend money to someone close to us has always posed a dilemma. If not lent, it is not bad. But if the loan was, there is no risk money back.
To avoid such unpleasant situations, here are some questions you should consider before deciding to disburse funds:
Verify whether the person will be given a loan can be trusted. If the less likely the money you lent will come back, then it’s better just to give a fraction of that required, or not lend at all.
Conversely, if the person can be trusted, then you should consider giving financial assistance according to ability or just give you sheilas without hope will return.
If the person is counted to borrow small amounts of money, then you can wait until he has the consciousness of his own to return the loan. If he borrowed money to par was, it would not hurt if you occasionally remind her to make a payment (of course in a smooth and not too obvious).
Reserve fund was used to deal with emergency conditions and can be invested to provide additional revenue for you.
Meanwhile, when the loan funds will be used only in part then step your debt is considered less effective. My advice extent necessary funds only, unless you have a plan to develop the loan proceeds earlier. If it had no intention to invest, look for an investment instrument that gives a higher income than the amount of interest on bank loans. So do not be put on deposit because you will lose big.
Pick a business activity or investment products that provide higher profits than interest on the loan. You can learn some business profile and business analysis in the mass media or through their own observations. Regarding education insurance, is actually a special investment fund set up to prepare for education. These investments are beneficial in the long term and can only be withdrawn on the due date or if there is risk of death.
Therefore, education insurance suitable for your new sister sat in junior high. The maturity date can be arranged in accordance with the schedule of college education, so when will the money liquid. But to be able to pursue an appropriate amount of education funding with an estimated cost of education is already calculated the premium, usually more expensive than if you invest yourself.
To choose a good education insurance premiums affordable price, you should go to an agent to ask for detailed information. Choose the insurance that has a high reputation, has many branches, length of experience, performance and level of good health. Several economic magazines often peeling performance rating and health insurance companies operating in Indonesia.
Borrow motifs in different communities. There are people who borrow for capital to open their business and Best Business. There are also people who borrowed for home renovations, buy new cars, buy computers and so forth. The difference is that last motif makes the bank and then create a wide range of loan products. Each product is created to fulfill different purposes. Basically, there are three kinds of credit products. Namely:
1. Business Loan
2. Consumer Credit
3. Multipurpose Loan
Business Loans are loans used to finance the business or the business cycle which can lead to something productive, such as trade, domestic industry, business consulting services, and deodorized. If you have a business that its prospects look bright enough, you can come to the bank and apply for loans can get funding for your business.
Meanwhile, Consumer Loans are loans used to buy things that are consumptive, such as buying a home or private vehicle. Two consumer credit which is usually quite popular mortgage (mortgages) and Auto Loans. Of course, because that money will be used by customers for the purpose of consumption, the risk for the bank that customers can not afford to repay the loan will be larger so that in general the interest rate charged to customers for consumption credit would be greater than the mortgage interest for purposes of business.
There are several things to consider if you think to borrow money. Ideally, you should be able to:
• Know a variety of sources and institutions that provide loans
• Assess the loan terms
• Know how to calculate the cost of credit
• Define your own debt limit
Where can you borrow?
Most consumer credit comes from banks, savings and loan institutions, credit unions, credit card companies. There are also people who borrow from family or others who are a source of credit (not) good. Lenders who do not have a fixed place of business usually offer loans with higher interest rates than the legal interest rate.
To anyone you borrow, make sure you get a signed contract, and READ THE FINE PRINTED TEXT including the terms and financial costing.
How Much is Needed?
Before taking a loan, think carefully how much you need. Usually you have to pay a deposit of about 20% to 30% of total loans, depending on the type and amount of loans, the experience of your other debts, and the value of your credibility. In addition, you need to allocate funds for monthly payments and interest. It also depends on your loan term and interest charged by financial institutions. Finally, you also have to allocate funds for insurance and other taxes, such as the value of the building. All this depends on the type of loan that you’re proposing.
there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that could be used for any purpose can be used for consumption or to start new businesses such as printing, business and trade Sworn Translator. Well, one of the versatile loan products are often marketed Loan. Collateral is another name of security. Lo, do not borrow money from banks usually have to use the warranty?
Yes. In general, if you want to get credit, you have to pledge one of your own property to the bank so that if you are not able to repay the loan, the bank will confiscate your property is guaranteed. Surely it must guarantee the value of goods greater than or at least be equal to the value of money you borrow. But on Loan product, you do not have to submit items to the bank guarantee. You are only required to have a certain amount of income every month and deliver a series of evidence that could indicate that you are indeed correct for the amount of income required.
Of course, for the banks concerned, the risk of default from the customer will become even greater because the bank has no collateral from you and will oversee the bank is also not used to what the money they lend to you that (the numbers we will discuss upcoming special about one of the loans without collateral product is now being heavily marketed in the community).