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Getting Your Finances in Order: 5 Reasons Why You Should Consider Debt Consolidation

March 19th, 2019 Posted in Credit and Debt
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With all of U.S. household debts combined, Americans together owed a skyrocketing $13.21 trillion in 2018, hitting a record high. However, the amount of debt the average American might owe depends on their financial status, level of education, current employment, age, lifestyle, among other factors.

Regardless of how much you owe and why, getting out of debt is critical in order to take stress off your plate. Clearing debt also means getting to fix your credit score. And as most of us are aware, having an ideal credit score means getting a better chance for renting a home, getting lower interest rates on credit cards, and having a better shot at getting approved for a loan.

Getting Your Finances in Order: 5 Reasons Why You Should Consider Debt Consolidation - getting out of debt image

Getting out of debt is hard, but with debt consolidation, some might find that it’s a reliable solution. Debt consolidation is a type of debt refinancing. Via debt consolidation, all of your unsecured debts get rolled into a single loan. In fact, there are multiple reasons why one would consider debt consolidation for paying off their pre-existing debts, such as:

  1. Lower interest rate

With debt consolidation loans, you as the borrower will often get the benefit of receiving a loan that has a lower interest rate, that is, as long as your debt consolidation loan has a lower APR than your current loan. The intention of this is to allow the borrower to pay their dues quicker. Because debts can be paid faster, both the borrower and the lender can benefit in this case.

A lower interest rate means you are forking out less money every month as you pay back your loan. Apart from the short-term benefits, you’re also benefitting long-term as you’ll have overall had to pay back less to your lender interest-wise. As a result, a lower interest rate to pay back your debts can also indirectly help you save more money and better your finances overall.

  1. Only having to pay back in one payment

Apart from the money you have to pay back and the interest rates that are tied to it, what is the next most annoying thing about having debt? Having to pay your dues to multiple lenders through multiple payments. After all, many Americans have multiple credit cards. However, with debt consolidation, you’re simply paying to one lender via a single monthly payment.

Unless you like wasting your time and having to pay what you owe split up in several bills, paying off debt through a debt consolidation loan tends to be the more preferred option. It’s just easier, and quite frankly, it makes more sense to put all of your debts in one pool.

  1. A more convenient way to pay off debt

When we say debt consolidation allows debt holders a more convenient way to pay off their debt, we mean multiple things. For some individuals, a lower interest rate alone may be convenient for them on a financial level. However, debt consolidation is also convenient in terms of the latter point we discussed regarding only having to pay back in one payment.

Having to only pay back one lender with one payment on a monthly basis means less work for you. You’ll have one bill with one payment, making things much simpler and quicker on your end. Thus, there is no need to sift through multiple credit card bills to make several payments to different lenders when you opt for debt consolidation.

  1. More likely to pay back on time

There are multiple reasons why one is more likely to pay their debt on time when they opt for a debt consolidation loan. For one, only having one payment each month means no more having to juggle multiple loans. In turn, you’re more likely to pay your dues that month as you’ll no longer be forgetting to pay back one of your loans if you have too many currently on your plate.

Additionally, you are more likely to pay off your debt on time via a debt consolidation loan considering you will be better able to afford it out of pocket. Coming back to point one on our list, those with debt consolidation often get the benefit of lower interest rates. Therefore, there’s a higher chance that they will be able to afford what they owe when it’s due.

  1. Getting out of debt quicker

There are many reasons why it’s a good idea to get out of debt as quickly as possible. For one, having debt is stressful. Seeing the number build certainly doesn’t help. Additionally, the longer you have debt, the more money you will owe in interest. Also, having a large amount of debt long-term doesn’t make your credit score look too good, affecting the way creditors look at you.

Fortunately, opting for debt consolidation is one way you might be able to get out of debt sooner. With all of the latter benefits in mind, especially a lower interest rate, it makes perfect sense why debt consolidation can help you eliminate your outstanding patients much sooner than you expect. The faster you’re out of debt, the better you’ll reap financial benefits.

Regardless of the various benefits of debt consolidation, it’s vital that you do your own research to decide if this debt refinancing option might be something you want to try. For more information on debt consolidation, head to DebtConsolidationUSA.com.

Conclusion

Debt consolidation means getting to pay back your debt with a lower interest rate, having an easier way to get out of debt, and only having to pay back in one monthly payment as opposed to several. Other benefits of debt consolidation include being better able to remember to pay back on time and getting the opportunity to get out of debt faster.

With the latter said, debt consolidation may save you money short- and long-term and get you back on track to boost your credit score, overall helping you get your finances in order. After all, when one has good finances, they can enjoy an easier, less stressful life. Thus, getting out of debt may be the best thing you do.

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Making The Process Of Moving House As Cost-Effective As Possible

March 15th, 2019 Posted in Money Tips, Property Investment
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Moving home is an expensive process, but you could hugely reduce that expense with sufficient planning well in advance. The key is to avoid jumping into decisions without properly weighing up your options. You might be eager to move and perhaps you’re even working within a limited window of time, but you can’t put a price on thorough research when it comes to saving yourself a fortune. In this article, you’ll find some suggestions that’ll help you to make the process of moving house as cost-effective as possible.

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Photo by Milly Eaton from Pexels

Do your property research.

As mentioned in the introduction, thorough research is essential to saving money when it comes to moving house. We’ve discussed this on our site before. And research is incredibly important when it comes to the purchase of your new home. After all, this will be the biggest expense you face throughout the entire process, and it’s a purchase that should serve you for many years or decades to come. Of course, we’re not going to suggest you should aim for the cheapest properties possible. You should aim for the most cost-effective properties possible. You don’t want to compromise on quality when it comes to buying a house that you’re hoping to call “home”. You might want to check out https://www.redrow.co.uk/ for high-quality new builds that come at an affordable price. There are plenty of cost-effective options when it comes to modern properties. Just make sure you weigh up plenty of different options. Get good at haggling too.

Declutter.

Another way to make the process of moving house as cost-effective as possible is to declutter. For starters, this gives you the opportunity to make some money. You could sell old possessions online or at a yard sale to raise some funds for the house-moving process. But it’ll also save you money when you hire a removals company to help you transport your belongings to your new home. You’ll get a much cheaper quote if you have fewer belongings to move. Decluttering is sensible both in a financial and a mental sense. You don’t want to drag all of your clutter with you to your new household, after all.

Search for free or cheap furnishings.

Even if you save a heap of money throughout the moving process, you might be worrying about the cost of turning your new property into a home. This is particularly the case for those who are moving into their very first property, but even people who are moving from one home to another might have to get rid of old things and buy new ones to replace them. However, before you spend a fortune at your nearest furniture store, you might want to search for free furnishings in your area.

You’ll find so much fantastic homeware and pieces of furniture online that doesn’t cost you a thing if you look in the right places. Freecycle is a great site for finding free furnishings, as suggested at https://www.moneysavingexpert.com/. Facebook Marketplace also has options that are either free or cost next-to-nothing. It’s worth browsing the internet to see if you can find anything that’s perfect for your new home before you waste a lot of money. The perfect furnishings could be waiting out there for you at a fraction of the price you’d pay in a standard store. That being said, some charity-run furniture stores stock absolute gems at amazing prices.

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A Quick Introduction to Short Selling Currency and Its Use in the Forex Market

March 15th, 2019 Posted in Investment, Money Tips
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There are many strategies used when trading in the financial markets. Traders in the markets often buy shares or assets when they think that their value will go low. When a trader does this, the expectation is that the value of that asset will go high just in time for them to sell. By doing this, therefore, the trader is able to make some money. This is what shorting is all about in the markets. In the currency market, this process is a bit different since it involves two currencies where the short position sees one currency in the pair falling and the other one rising. Let us look at the strategy in detail.

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Short Selling in the Currency Market

As stated in the introduction, short selling in the forex market involves a pair of currency. Take the USD/EUR pair for instance. This pair comprises of base currency (the USD) and the quote currency (EUR). If the quote of the currency is USD/EUR=0.88 and the trader decides to go short, then they will basically be short selling the base currency while going long on the quote currency. In the hypothetical situation here, quote indicates that 1 USD equals 0.88 EUR.

The Premise of Shorting in the Forex Market

The premise of every trade done by a trader is that their move will allow them to make a profit. When a trader is short selling the USD therefore, they are expecting that at a point in time, the USD will be lower in value compared to the EUR. The ideas that inform such a move come from the research done on the market. Short selling in the currency market is pretty straightforward. There are no special requirements that a trader needs to comply with, nor are there special rules on the trade.

Risks Involved in Short Selling

Like in every other market, there are risks involved in going short particularly in the currency market. When a trader decides to go short, they are putting themselves at risk of losing money exponentially. This is because short selling assumes that the price will fall. If the price decides to rise however, there is no upper limit on how much the price of the currency can rise. Long selling does not have such a risk since the price of the currency can only fall to zero and not beyond. Traders thus are exposed to risk when going short and there needs to be a means of limiting the risks.

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How to Limit the Risks?

Fortunately, there are a number of ways through which a trader can limit the risks of short selling. One of the most effective ways of doing this is by using a stop loss. Stop losses are used across the financial markets and they provide a simple mechanism of exiting the trade when there are no profits to be made. The stop-loss tells the broker to exit the trade when a set short value limit is reached. The opposite this is placing a limit order, which exits the trade when the projected profit is met.

Crucial Issues to Note When Short Selling

As previously indicated, the forex market is great for traders who want to short sell. It is a flexible market that welcomes traders of all calibers. The market is nevertheless quite risky when it comes to short selling, especially when compared to other markets. The upper limit of loss is virtually infinite even though the lower limit of profit is 100%. Traders need to be prudent when trading in this market, therefore.

In summary

Short selling is a great way to make money in the forex market. For this strategy to succeed, the forex trader needs to be a good risk manager. The use of tools like stop loss is advised as the market is rather unpredictable. It is advisable to never risk more than 1% of the account. The basic premises of shorting in the market is similar to what is common in other financial markets. With proper strategies on risk elimination, there is a lot to be gained when shorting in the foreign exchange market.

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Why Is Technology Important To Your Money?

March 12th, 2019 Posted in Entrepreneurship, learning about money
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When you don’t have an affinity for technology, it can be easy to find yourself looking for ways to avoid using digital devices all together. As few of life’s tasks will be given to these machines, with paper still playing a large role, and this is how a lot of people still live. Of course, though, when you don’t use the latest gadgets and gizmos, you lose a lot of the benefits which other people will be getting. To help you out with this, this post will be exploring the importance of technology in the field of finance, giving you a few more reasons to start using the tools you already own to better control your money.

Why Is Technology Important To Your Money? - computer and money image

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Missed Communications

Most businesses hate using paper to do their work. Compared to emails and SMS messages, using letters is horrendously expensive, costing some companies millions to reach all of their customers. To cut costs, most banks will send as little as possible through standard mail, using digital communication methods to get information across. This makes it hard to choose financial companies based on their merit, when you’re only using old school tools. While some will still offer paper correspondence, it is becoming rarer and rarer, and this is something which some people are struggling to adapt to.

Security & Monitoring

Thanks to the wave of recent cyber attacks which have impacted companies across the world, a lot of users feel worried about security when it comes to online banking. In reality, though, these companies are the world’s leaders when it comes to data security. They have built their online systems to be secure from the ground up, and can often provide you with greater security when you choose to use their online services. For example, if they are able to use the web to learn about your spending habits, they will be able to send you an alert if something doesn’t look right, often stopping fraud before it becomes a massive problem. However, it is also recommended to look at getting data protection officer services to ensure there is no breach of GDPR.

Ease Of Use

Filling out paper forms and using letters to keep up to date with your banking is never easy. In fact, when people choose to go down this route, they will often find that they make mistakes, with the work which they have to do being incredibly complicated. Tools like MTD software can take things which people find the hardest, like tax, and make it into a streamlined and simple process. The only way to make something like this easier it to hire someone to do it for you, and this will cost a small fortune.

With all of this in mind, you should be feeling ready to start learning how to better use technology when it comes to improving your finances. Most people have room to grow in this area, and the smallest changes can often have the largest impact, making it worth spending plenty of time on this to make sure that you’re getting it right. Once you’ve learned how to use a piece of tech, it will only get simpler.

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5 Ways To Improve Your Financial Situation

March 12th, 2019 Posted in Money Tips
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Unfortunately, something we will all experience at least once or twice in our lifetime is a period of financial difficulty. Whilst it isn’t something you will experience forever, it can be difficult to get out of a tough time when it comes to money. To help you through this tough time, we have put together 5 ways to help improve your financial situation:

5 Ways To Improve Your Financial Situation - open palm with money coins image

Photo by Jordan Rowland on Unsplash

– Cut Down On The Non-Essentials And Shop Smart

Although it may seem obvious, cutting down on the non-essentials and shopping smart is a great way to ensure you have disposable income at the end of each month. Whether that means cutting down on your takeaway coffee on the way to work or shopping store-branding products when you’re buying groceries – the little changes can make a huge amount of difference over a long period of time. If you want to see how much difference they are making, consider keeping a jar where you put all of the money you would have spent if you weren’t ‘shopping smart’.

– Put A Set Amount Of Money Away Each Month

If saving is something you struggle with, consider putting a set amount of money away each month. The easiest way to do this is to set up a direct debit as often, you won’t notice it leaving your bank account. If you’re worried you can’t afford to save yet, try starting with a really small amount then build it up month by month. For a guide on saving money, you can visit this site here.

– Make Yourself A Monthly Budget And Stick To It

Often one, of the best ways to ensure you’re not overspending is to set yourself a budget and stick to it. This means creating a spreadsheet that details all of your ingoing and outgoings, making any necessary changes as you go along. Having everything written down not only shows you where your money is going, but it gives you an opportunity to see how much you could realistically save each month. If you want to know how to set up your own budgeting spreadsheet, you can visit this guide here.

– Start Thinking About Your Pension Early

If you’re worried about how you’re dealing with money now and whether or not you’ll be able to afford your retirement, it might be best to start thinking about your pension as soon as you possibly can. A great way to do this is to speak to an investment planning company, as they will be able to help you make an informed decision.

– Consider Looking At Debt Consolidation

For those that are really struggling with debt, there are ways in which you can create one payment plan to cover it all. Debt consolidation is great for those that want a small monthly payment, rather than lots of payments that they struggle to keep a track of.

Do you find that you’re spending most of your time worrying about money struggles? What changes can you make to your life to ensure you’re getting back on track? Let me know in the comments section below.

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