My personal diary…

Different types of loans are available for almost every aspect of your life: personal loans, car loans, secured and unsecured loans, home loans, homeowner loans, student loans, graduate loans and career development loans (CDL). If you’ve suffered from credit problems in the past and now hold sub-prime characteristics, then you will be eligible for adverse credit and adverse loans.

You can always borrow money these days, but it is crucial to read the small print as the difference between interest rates is enormous and stories of people forced to pay off amounts which are five times the amount of their original loan are not uncommon.

There are also numerous stories on unemployed couples being sold loans, such as the case of Julie and Kevin Davies, reported by the BBC. The couple were already experiencing difficulty in paying off their existing debts of £4,000, when they were sold another £20,000 loan by Lloyds TSB.

Loans of £1,000 to £25,000 can be taken out and repaid over a period typically varying between six months and 10 years depending on your credit history and available finances. Loans are usually secured or unsecured. Secured loans are tied to your house, so you can be forced to sell the house if you are unable to make the repayments. Unsecured loans do not impose the same restriction, though a default on repayments may result in being “credit blacklisted”. Once blacklisted, you may get future credit card, mortgages and hire purchase applications rejected, as well as face a potential higher rate of interest for all existing debts.

It is absolutely crucial that you shop around for a loan and not just through the high-street banks. The internet offers a wealth of information available and there are many sites which compare the prices of products, and to really ensure you get a good deal – compare the different comparison sites. In the UK moneyfacts, moneyextra and moneynet ( http://www.moneynet.co.uk ) offer price comparison services for a wide range of loans, amongst other financial products. These sites also offer consumer information guides, which you can either print directly off the website or download on to your computer.

Do read all the terms and conditions carefully and ask friends, family and your financial adviser / bank adviser if you don’t understand a particular statement. The annual percentage rate (APR) is particularly important and can make a difference of thousands of pounds over the term of the loan.

Unsecured loans can be purchased from building societies and banks, as well as certain high street shops. Unsecured loans may be taken out for something specific or simply to make life more ‘comfortable’. The process usually involves:

* Requesting a typical amount for the loan
* Discussion of interest rate (APR) and possible loan payment protection insurance
* A credit check, you may wish to get one of these first, so you know what to expect
* Reading the terms and conditions and then signing the agreement
* Money can then be transferred into your account

In the discussion of secured versus unsecured loans, moneynet explains that although secured loans can offer lower interest rates and repayments, many people do not wish to jeopardise the potential loss of their home in the default of a repayment of a secured loan. In unsecured loans, pay attention to the difference in APR, term of the loan and any additional charges such as an early settlement charge or redemption penalty.

According to the American Bankruptcy Institute “household debt is at a record high relative to disposable income.” The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 “exceeded 1.6 million for the first time in any 12 month period,” a 15.1 percent increase from the previous year.

There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 Bankruptcy and Chapter 13 are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay about $160.00 in court fees. Attorney fees are additional.

Chapter 7 bankruptcy involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. Exempt property may include automobiles, some household furnishings, and property needed for work-related use; for example if you were a mechanic the tools you use to perform your work would be exempt from the bankruptcy settlement. Exemption amounts vary from state to state.

Under this plan the court appoints a trustee to handle the liquidation of your non-exempt property. The trustee can sell or turn over your property to your creditors. The court discharges your debts and you are now debt-free. You are allowed by law to file a Chapter 7 bankruptcy once every six years.

A Chapter 13 bankruptcy allows you to keep property, like a mortgaged house (provided there are no liens on it) or a car, as long as you have a steady income. A Chapter 13 bankruptcy is a court-ordered and approved repayment plan to your creditors. This plan allows you to use your future income to pay back your debts over a 3-to-5 year period without surrendering any property. Once you complete payments under the plan, your debts are discharged by the court.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both provide exemptions that allow people to keep certain assets, although exemption amounts vary. A bankruptcy will not erase most child support, alimony, fines, taxes and some types of student loans.

Financial experts agree that a bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. A bankruptcy remains on your credit report for a period of 10 years, making it more difficult to obtain credit in the future. You should also know that although your bankruptcy disappears from your credit report after 10 years, you may still be asked by future employers or lenders if you have “ever” filed for bankruptcy.

In this high risk life era like now, we need any kind of things which could help us to minimize any kind of risk. Including any kind of accident risk when we are driving on the road.

We never could to calculate and make prediction about our life risks. And nobody want to have any kind of accident. So that’s we need insurance. For me insurance like car insurance is any kind of risk control tools which could help us to manage our life risk and any kind of accidential things which could make any extra cost which we could imagine it before. And sometimes it isn’t out of our budget when we got something extremely’s accident. That’s why we need insurance like car insurance. As we know, that car maintenance and car’s repair isn’t something cheap, and to make that cost is under our control we need to buy car Insurance.

So what we should do when we want to buy car insurance?  Of course we need to take more attention with car insurance rate and their policy. Cheap Rate did not always mean it is better than expensive car insurance rates. It must have plus point why they are more expensive than the others. So we need to see their term and condition. And we need to do some analysing that facilities. Buy it if we see that we need that facilities, and don’t be hestitate to reject any kind of unuse facilities.

Instant payday advance… What’s that? and why we need that?
Before we discuss it for more detail, we need to see their background, their function, and why we need that. Could we imagine when we don’t have any cash money, suddenly happen in our life and need some extra fast cash money? For example, suddenly we or our family have traffic accident and need to have some operation as soon as possible and in the other we didn’t have any money in our pocket? Or we also need a cash to repair our car, etc.

That’s the instant payday advance’s background. So what their benefits if we compare with another kind of loan? TIME to get it is their plus points. It just need about a day to process your application without many consideration. That’s what we couldn’t get from any kind of bank loan. Another benefits of cash advance is it doesn’t need many kind of complicated requirement to make our loan to be granted. Even we have a bad credit points in bank, we still could get it easily.

But as a instant loan,  what we need to calculate is their interest. We could say that instant loan has higher interests than the others. So take  more attention with that risk and make sure you could pay it back immediately.

Instant payday loans become an instant solution for someone who really need a cash. I agree with that, but we need to add some exception and condition before we are going to take payday loans. Why? Plus point from payday loans is we could get it easier than another credit loan. Easier and faster, we just need about a day time to get fresh money from payday loan.

But beside their benefits, it also has negative points which we should take more attention when we want to take payday loan. Make sure that your financial need is very important and you could pay it back immediately. Because payday loan’s interest is higher than another kind of loans. And make sure you could pay it back ON TIME. For me Payday loan is become effective solution for someone who want to get fast cash money and sure that in the due date we could pay it back sharply and won’t get any delay to pay it back.

Or for someone who already has bad credit report, Payday loan become one of the best solution to get new credit. Because nobody want to give their money to someone who have bad credit report except some of people who sell payday loan’s services.

In this modern time, plastic money or credit card become one of the important things which we must have. Credit card become one of the most efficient things to make some money transaction. We don’t need to bring a lot of cash when we are travelling. Another positives thing for credit card is like a month term loan without any interest loan.

But beside of that positive things about credit card, and also because too much credit cards, Credit card also has bad effect for our life. Especially for someone who don’t have any good skill to manage their personal finance. There are a lot of people who can’t manage their finance and can’t control their financial when they use their credit card. What’s the effect? In the end of periods, they couldn’t pay their credit card bill on time.

That’s our main point today. We want to discuss about Credit card’s problems and why we need Credit card debt consolidation. What is credit card debt consolidation? is a finance’s services which help us to handle and manage our Credit card’s trouble with lower interest than credit card’s loan interests.

Why we need that? because if we have a problem with our credit card, it could give a negative effect with  our credit scores and it means it could affecting our loan request to Bank.

The sophisticated nature of investment means that a lot goes into making an investment decision. Since there is much at stake, an investor should consider the basic attributes of an investment when deciding on a suitable investment. At least four investment attributes are integral to sound investment decisions:

1) Safety
2) Rate of return
3) Liquidity
4)Duration

Safety

Although the degree of risk varies across investment types, all investments bear risk. Therefore, it is important to determine how much risk is involved in an investment. The average performance of an investment normally provides a good indicator. However, past performance is merely a guide to future performance- not a guarantee. Some investments, like variable annuities, may have a safety net while others expose the investor to comprehensive losses in the event of failure. Investors should also consider whether they could manage the safety risk associated with an investment- financially and psychologically.

Rate of return

Investments generally provide higher rates of return compared to other asset classes like cash and income options. The rate of return of an investment compensates for the level of risk involved. Therefore, higher risk investment should necessarily bear higher rates of return to attract investors. It is important not to be preoccupied with the rate of return without assessing its relation to the safety of an investment.

Liquidity

A liquid investment is one you can easily convert to cash or cash equivalents. In other words, a liquid investment is tradable- there are ample buyers and sellers on the market for a liquid investment. An example of a liquid investment is currency trading. When you trade currencies, there is always someone willing to buy when you want to sell and vice versa. With other investments, like stock options, you may hold an illiquid asset at various points in your investment horizon.

Duration

Investments typically have a longer horizon than cash and income options. The duration of an investment-, particularly how long it may take to generate a healthy rate of return- is a vital consideration for an investor. The investment horizon should match the period that your funds must be invested for or how long it would take to generate a desired return.

A good investment has a good risk-return trade-off and provides a good return-duration trade-off as well. Given that there are several risks that an investment faces, it is important to use these attributes to assess the suitability of an investment. A good investment is one that suits your investment objectives. To do that, it must have a combination of investment attributes that satisfy you.