Personal Loans Australia News

Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.

Sat, 24 May 2008
Bad Credit Debt Consolidation, How to Start.
For many of us, getting into debt becomes a big merry-go-round of more and more debt. The more debt you have the more debt you seem to attract to you. In many cases this is due to the fact that you can no longer plan your financial life.

For the employed amongst us, this usually results in robbing Peter to pay Paul. You borrow from this source to pay that loan, with the net result being that nothing actually improves; apart from perhaps you may be buying a few weeks grace.

For the self-employed, you lose the ability to plan the best use of your resources, with the end result being your potential future income will start to drop and you find it more and more impossible to plan your future.

There are a number of debt counselling organisations you could turn to, but be careful here. The last thing you want to do is to start spending money you havent got, and better advice would be to either go and see your bank manager, or look at what you may be able to do by yourself.

A couple of ideas you may not have thought about. Most creditors, being businessmen, do not like taking legal action against anyone, or hound them. They are mostly all negotiators, so the first line of attack is to approach every one of your creditors, and see if they will accept special terms at least for a shorter period. This is especially the case if you have fallen behind due to circumstances beyond your control  a major illness, divorce, losing your job, or perhaps something more drastic like Identity Fraud, or some fraudulent actions towards you. If it is because you have been extremely reckless with your spending, you had better cut up your credit cards&

Creditors (well, responsible ones) will not force you into bankruptcy. Why? Because it would cost them money and unless you have masses of assets, they will get nothing. If they can help you back into a better income generating situation, everybody gains!

If that does not do the trick, although you can not easily reduce the actual amount you owe, there are a number of ways that can at least reduce your monthly repayments.

So, if you have read this far, you are probably very serious in getting out of your present situation. It takes guts  believe me  I have been there and dug my way out!

Start by speaking to reputable debt consolidation companies  use your bank or people you know who can recommend one to you. Their small monthly fees are nothing to the reductions in your monthly outgoings.

Your bank may even offer a low interest consolidation loan, or may even advise you to take out a loan against your property ( but only do that with advice  your home may be at risk if you can not meet repayments), but it can in many cases be a very low cost loan.

Whatever you do try to remove the reason why you got into this situation in the first place. Think about using cash as opposed to plastic  it can be a great feeling to pull fresh notes form your wallet , and a great boost to your self esteem!

Source: http://www.bad-credit-tools.com

Thu, 29 May 2008
18 Personal Loan Tips For Intending Borrowers
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

Be honest in loan applications

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

Don't just take the dealer finance

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Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

Personal lease applications will require:

· proof of current employment

· income details or tax returns

Business lease financing requires more detailed information and may include your:

· balance sheet

· tax returns

· cash flow projections

· business plan

Confirm with the lender what you will need before the interview.

Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

Honesty counts

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

Source: http://www.money-tips.com.au/

Fri, 13 June 2008
9 Ways to Stretch Your Income
Here are some great tips for stretching every dollar.

1. Save a penny, keep a penny.

Dump your pocket change into a jar each night.

Invest it in a high-interest bearing account at the end of each month.

Woman's Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.

Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.

2. Use your computer.

You can save big money by shopping online, if you know where to look.

Do a Google search for coupon codes before you start shopping from online merchants.

You can also purchase a local coupon book for offline purchases (The Entertainment Book, for example.) I use mine all the time for groceries, oil changes, and dining out.

3. Write letters.

Whether you love the product or hate it, write the manufacturer a letter.

A company that receives a complaint is bound to make amends.

On the same token, many companies will acknowledge--and encourage--your satisfaction with coupons and discounts.

4. Shop smart.

Look at the grocery store ads before heading off to the store.

Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.

5. Ban impulse buying.

Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.

6. Watch out for "nickel and dime" expenses.

Those little snacks and coffee stops can easily add up to more than $500 per year.

7. Shop around.

Research purchases on the internet.

Before making a big online purchase, visit http://www.dealtime.com and http://www.mysimon.com.

8. Refinance your home.

Signing a few papers can save you big money on your mortgage payments. In fact, if you refinance and consolidate your debts into your home mortgage you'll find that your monthly outgoings can decrease dramatically.

It's really not as big a hassle as you might think.

Ask your friends and family for the name of a good mortgage broker

9. Examine credit card use.

If you're paying credit card debt, you're paying not just 17 percent more for your purchases than you need to, you're also missing out on the money that the sum could earn for you if you had invested it.

Try calling your credit card company and ask if there’s a way to lower your rate.

One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I'd made a long time ago.

The most important thing is to recognize that you control your finances. Empower yourself with smart spending.

Source:Susie Cortright



Sat, 21 June 2008
16 Simple, Everyday Ways to Save Money
Here are 16 of the simple, everyday changes that have worked for us.

1. Use a coupon, absolutely whenever possible. I was really surprised by how many money-saving opportunities are out there when I knew where to look.

For local purchases, get an “Entertainment Book” each year and you will save on those inevitable everyday expenses ranging from dining out to accommodation and admission to movies, theme parks, etc.

For online purchases, stick to the reputable retailers. You certainly will not save any money if you are the victim of fraud or if you are simply unable to return an item. And before you start shopping, always look for a coupon code that will allow you to save on your purchase. In the past, many online retailers sent out promotional codes as a series of letters or numbers that could be entered at checkout. Now, many retailers use a button or text link that automatically activates your coupon when you click through, so it is often a good idea to find the coupon first, before you start to shop.

2. Shop around. The internet is an amazing tool for researching products and retailers, as well as for comparison shopping. We make nearly all of our large purchases online. It is also important to know where to shop. For holiday gifts, plan ahead and check out the big online discount stores. Many offer significantly reduced prices on trusted brands. And you can get great delivery rates too, even on large gifts. I once had an enormous game table shipped to me for $2.50.

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3. Keep a running list of gift ideas for your loved ones. I have found that when I am confident that a gift is perfect for the recipient, I am much less likely to overspend. But that kind of inspiration rarely hits me during the pre-Christmas rush, so I need to keep a list going the whole year through.

4. Budget. Of course, it is important to know what you are really spending. For years, the budget I had in mind was really more of a “wishful thinking” budget. But this quickly led to debt. It pays to get realistic. Whether you use a computer program or a simple ledger book, make sure you know where your money is really going.

5. Save for the future. Take 10 percent of your income and put it in savings, right off the bat. Now you know what you need to cut back on (or how much more you need to earn) to shore up the deficit.

6. Plan ahead. You will want to make sure you have money in the bank for emergencies. Experts say you should have three to six months of living expenses set aside, for those just-in-case times. It sounds like a lot, but start socking away money each month, and it will add up fast.

7. Get organised. When your home is organised, you will be less likely to spend money on items that are already hiding in the nether reaches of your closet and drawers. The same goes for your refrigerator and kitchen cupboards. Purge and organize before you shop.

8. Simplify. There is a certain romance to the “simplify your life” movement. And having too much stuff really does weigh us down. Take a look at everything in your home. If it does not add joy, beauty, meaning, or usefulness to your life, give it away. And when you are tempted to buy something new, it must pass the same test.

On a quarterly basis, go through your house and ask yourself these same things again. Go through your closet, attic, garage, and basement and purge those items that do not add genuine joy, beauty, meaning or usefulness to your everyday life.

9. Reduce, reuse and recycle. A simple lifestyle, for me, is about reducing my urge to over-consume. It is about being kind to the environment. It is about spending less money on material things, so that I have more time and money to spend on memories with my family. Make changes that will help the environment and your purse at the same time. Install water saving kits on your toilet. Write on the back sides of paper. Use reusable containers in your lunches. All these little things really do add up, and it is important to show our children how we can all be part of the solution.

10. Shop without your kids. I know that if I get a shopping cart at Coles and I do not have a list, I will spend $150. If the kids are with me, I will spend even more. This is another reason it makes sense to do your shopping online. You are less likely to purchase the incidentals.

11. Make sure that your credit card is paying you back via an incentive program. I found a credit card that allows me to earn points on my daily purchases toward our annual vacation trip, including airline miles and hotel accommodations. Since most of my expenses each month are incurred at the grocery store, I found a card that rewards specifically for these types of purchases. Of course, you will need to make sure that you are paying off your balance each and every month. Paying a high interest rate on your credit card will quickly negate any savings you accrue on your incentive plan.

12. Lower your interest rates. If you are carrying a balance on a credit card, give the credit card company a call to see if they will give you a lower rate. Sometimes, it is just that easy.

13. Shop around for insurance. The money you pay for car, home, life and health insurance can vary greatly. Do some research to find out if you are getting the best rate.

14. Be wary of the influence of TV commercials and print ads, especially on your children. We hear fewer cries of “I want that!” when we keep our kids programming to those channels rely less on advertising dollars, such as the ABC and some pay TV channels.

15. Play “Time Warp.” This is a technique I first learned from “My Monastery is a Minivan,” by Denise Roy, and I use it quite a lot. It goes like this: When you are tempted to make a purchase, mentally fast-forward through the life of the item. For example, in her book, Roy thinks she needs new candleholders. She imagines spending time at the mall to find them, soon having to clean them, and then, years down the road, packing them in the giveaway box. She shirks the purchase and soon rediscovers the heirloom candleholders that are packed away right in her own home.

I like to play this "fast forward" technique in reverse, too, asking: What new clothes did I buy last season? (Sometimes, I can not remember). Where are those "I have to have it" items now?

16. Keep your mind on abundance. When you are thinking about money, it is really important to get out of the poverty mindset. Too often, when we are focused on saving money, we are living from a perspective that focuses on lack and scarcity, which tends to bring about more of the same. It has been really helpful for me to make a conscious effort to see the world as infinitely abundant and to rest in the notion that my needs will be taken care of. This is generally a simple matter of thinking more about what I *do* have than what I do not have.

All my days of penny-pinching have certainly proven to me that it truly does not take money to make us happy. Many of my fondest memories have occurred in the smallest homes. My child’s favourite playthings tend to be the inexpensive items that were never designed to be toys at all.

And it is the simple, everyday pleasures that are the sweetest, when enjoyed together.

Source:Jamie Jefferson

Fri, 27 June 2008
Getting the Most Out of Your Bank
Having a bank that meets all of your financial needs is an asset that many people don't appreciate. If you have a bank that doesn't meet all of your needs, however, it's pretty easy to tell. In order to get the most out of your bank, you may need to investigate the services that your current bank offers, or you might have to find a new bank entirely that offers the services that you need.

Here are a few tips to help you to find out which financial services your bank offers, to help you find a new bank if your current bank simply doesn't offer the services to meet your needs, and to help you take advantage of special offers and account features so as to get the most out of your banking experience.

Explore the Options Your Bank Offers

The first thing that you should do in order to make sure that you're getting the most out of your bank is to explore the features that your bank offers in order to make sure that they meet your needs. Request information from your local branch office on all of the account options and features that the bank currently offers, taking them home to read over them at your leisure and determine whether or not you're missing out on certain advanced account features.

When reading the information, be sure to look out for any common features that you've heard advertised to see if your bank currently offers them... you should also be on the lookout for any features that are offered free of charge that you currently do not use, or any that are offered free elsewhere that your bank currently charges for.

Shop Around to Find the Right Bank

Should the services that your bank offers not meet your expectations or needs, you might want to consider shopping around at other banks in the area in order to find a bank that does offer the features that you want. This doesn't mean that you should close your current accounts right away, or at all... many individuals will keep accounts at several different banks so as to keep their money separated for different purposes.

Request the account features that different banks offer, comparing them to each other and to your current bank, so as to find the local bank that best meets your current needs.

Take Advantage of Special Offers

Many banks will have special promotional offers for new customers, or have special deals that they offer current customers in appreciation of their continued business. In both cases the offer is usually a temporary one, as is the case with most promotional interest rates or special account features. However, even a temporary interest rate or promotional account feature can save you some money for the term of the promotion, so it's well worth the time to investigate the offer further to see if it's worth it.

You should be aware of services that are free during the promotional period and that are charged for later... if it's not a useful feature, you need to make sure that you cancel it before you begin to get charged for it.

Online Account Management

One useful tool that many people don't take full advantage of is online account access and account management. The online tools may allow you to check balances, transfer funds from one account to another, or even pay bills directly from your account... it largely depends upon your bank and the specific features that they offer.

Source:Bill Stone



Mon, 07 July 2008
Good Debt Versus Bad Debt
Some people see debt as a curse, and other people see it as a friend. It can be used to make you miserable, or it can be used to make you wealthy beyond your wildest dreams. The trouble is, how do we know what is good and what is bad?

Well it basically boils down to this. Good debt puts money in your pocket after you have paid for the debt (interest), and bad debt takes money from your pocket on an ongoing basis. In todays society, the world has gone through an explosion in bad debt. In the United States for example, for every $1 a person earns, they spend $1.20. In Australia things are getting worse too. We spend $1.02 for every dollar earned. Back in the 1980's we would earn $1 and save 20c.

The single most influencing factor in this curse of bad debt is the credit card. It is so easy to get a credit card these days, and even school kids have them. Most people I know have several of them, and you know what, they max them all out. People get caught in this vicious circle of paying one card off with another, and still the interest bill compounds at an alarming rate.

It is not only credit cards that are doing the damage, it is also the ability to get three years interest free furniture and home appliances with no money down. This is a huge trap, and when people live beyond their means and do not have the means to pay back their debt in the given time they are hit with massive interest rates and so the cycle continues.

So that is bad debt, and I didn't even include cars, holidays and clothes, all charged up on your card! You get the picture.

Now onto good debt. Personally, I love good debt, and any wealthy person will tell you the same thing. With good debt you can purchase income producing assets that put cash in your pocket, even after the interest bill is paid. Some examples of this include property, shares and stocks, and your own business. It even includes things such as art, wine and other rare collectibles.

By leveraging other peoples money to buy such things, you are after a time able to put yourself into a fantastic financial position, and you can now begin to pay cash for those bad debt items like expensive clothes and exotic holidays.

When I was at school there was never any lessons on good and bad debt, and I'm pretty sure they still do not teach effective money and debt management. It is unfortunate that in a society such as ours, that the government does not teach this to every man, woman and child as it has a massive impact on our lives. Just look at the sub prime fallout in the States to see how people who overextended themselves are now really in trouble.

There is a way out if you are in bad debt, and there are resources out there to financially educate yourself before you do get into any trouble.

We only have ourselves to rely upon to shape our financial future, and the longer we leave it the harder it gets. Eradicate the bad debt from your lives, and begin to live without that heavy weight around your neck.

Written by:Clint Maher

Sat, 12 July 2008
Credit Secrets - What They Are Not Telling You
Credit plays a dual role in our society; sometimes a lifesaver, and at other times a murderer.

Trying to float above imminent economical disaster is a daily exercise for the majority.

So, credit companies often seem to be our rescuer, offering attractive interest rates, interest-free repayment periods and extended credit limits.

But, what they don't tell you at the time you apply for credit could be the knife edge you've been trying to avoid all along.

With the credit secrets they never disclose, you could be ignorantly heading for disaster

You can reduce your credit worthiness by applying for a lot of credit facilities: it's a fact.

The more credit you apply for, the more it's likely to reduce your credit rating.

The credit secret is that to the creditor, you're a high-risk customer who would spend easily, someone whom they can charge a higher interest rate from (it's usually clarified in the fine print that you don't tend to read).

They don't want you to pay the whole bill: yes, that's why they have a minimum monthly payment invoice.

The credit secret here is "the less you pay on a monthly basis, the more interest gets charged on your credit remainder."

In the end, you pay almost double the actual credit, because of the prolonged payments.

Low introductory interest rates don't last very long: they lure you with minimal interest rates, such as 4%, for the first six months or so. But, if you delay even one repayment, the interest goes up immediately.

The credit secret? Baiting you ... hook, line and sinker!

Additional fees are always added: if you think your credit repayments are subjected to a mere late payment fee, think again.

Credit cards are subjected to inactivity fees, overlimit fees and transaction fees, while other credit facilities carry additional fees calculated on overdrafts, failure to maintain a minimum balance and account closure.

Knowing these credit secrets will give you an advantage over the money sharks, and save you thousands of dollars over the years.

Written by:Taylor Leonard

Sun, 20 July 2008
Cash could be king
Don't rely on China's boom to carry you through a bumpy time.For years we've been told diversity is the key to investing because while one asset class struggles, another will be doing well and level out the bumps for a consistent return...

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Well, it looks as though we could be in one of those periods where cash is the only saviour. So it's time for an investment reality check to see where we are in the cycle.

ECONOMY

The US is in recession (we just have to wait for the official confirmation) and it looks as if Britain will follow. Some believe both economies are in for hard landings as they suffer from the credit crunch and plummeting property prices. As inflation starts to rear its head, the US hasn't much room to move, official interest rates being so low. Lift rates to fight inflation and it runs the risk of pushing that economy deeper into recession.

As for the Australian economy, we're in much better shape than either Britain or the US for a couple of reasons. First, the Australian Government is flush with cash after a string of budget surpluses has allowed a series of slush funds to be built (future, infrastructure fund, education, hospital funds and so on). There is plenty of money to throw at the economy if we come to a screeching halt.

Second, while I still think the Reserve Bank went too far in the last back-to-back rates rises, it has room to cut rates if the economy slows too much. Our official rates are among the world's highest, so there is plenty of room to cut.

Third, there is the China and India argument. Economists say that while those countries continue to keep buying our commodities, the mining boom will continue and that will underpin the economy.

Economists reckon there is no sign of the boom slowing, and they expect it to continue for years. I'm not as confident on this front. Sure, China has a big domestic market to feed, but it is an export-based economy and if its customers in the US and Europe start ordering less because their economies are in recession, it must have an impact on China's growth.

Sharemarkets are also lead indicators on the health of economies and companies. It worries me that the Shanghai stockmarket is down more than 50 per cent since the start of the year, and India is down 40 per cent.

But with mortgage approvals dropping to an eight-year low and consumer confidence the worst since the 1991 recession, average Australians are preparing for the worst.? SHAREMARKET

When boring old listed property trust GPT gets into trouble I really start to worry.

Then there's retailing star Harvey Norman, down from more than $7 in November to $3, the banks continually pounded, and now even BHP is back around $40. The sharemarket looks ugly, even the energy stocks (which have cushioned the full impact) dropping back.

As I've said before, this 5000-point level on the ASX-200 will be a critical indicator. If the markets bounce up from there solidly, some experts will be happier. If the market drops below that, there is a lot more pain to come.

Now I know there are many investors just itching to get back in the market and take advantage of some of these "cheap" blue chip shares. But I'm not yet convinced. There are three things you can do when looking at the sharemarket - buy, sell or sit on the sidelines. I'm still leaning towards the last.

Some say the resource stocks are good buying, but while they haven't come down as much as others, they're still pretty expensive when you look at the uncertainties ahead.

If you can't help yourself, talk to your broker and maybe start nibbling at some of the blue chips, but I think it is just too dangerous to take a major position believing this is the bottom of the market.

RESIDENTIAL PROPERTY

Banks have clamped down on financing, and auction clearance rates are terrible for the minority brave enough to openly sell. A mate looking for a house in Melbourne told a real estate agent he was disappointed with those available. "Don't worry," the agent said. "I've another 30 in this price range whose owners aren't game enough to publicly list them in this environment."

The best advice in residential property is just don't be forced to sell. If you're doing it tough with higher interest rates, do everything to hang on, because a forced sale could crystallise a big drop in value.

Investing for rental yield could be an option, depending on the property, but tread carefully.

CASH

Cash is king.

It's pretty hard to go by an 8-9 per cent guaranteed return in this environment, for the time being anyway.

Source:http://www.financialservicesonline.com.au

Sat, 26 July 2008
Who wants to be a millionaire?
Australia now has more of them than Brazil or Spain. John Collett looks at the reasons why.Thanks to the resources boom, the ranks of Australia's millionaires swelled more quickly last year than in most other developed countries...

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The number of Australians with financial assets of at least $US1 million ($1.03 million), excluding the family home but including superannuation, rose 7.1 per cent to 172,000, according to a survey by Merrill Lynch and Capgemini.

Of the 71 countries surveyed, Australia ranked 10th by number of millionaires.

Australia has more millionaires than Brazil and Spain, despite those countries having much bigger populations. As expected, the US is still the richest country and is home to 3 million of the world's 10 million millionaires.

Yet the large emerging economies of China, India, Russia and Brazil are growing their ranks of millionaires much more quickly than countries with fully developed economies. China, which had 415,000 millionaires last year, is on the verge of overtaking Britain and its 495,000 millionaires.

However, the credit crunch and turmoil in world financial markets slowed the millionaire club's growth rate last year and is expected to affect this year as well.

Wealth in Australia has been generated in several ways, says Thomas Alexy, Merrill Lynch's head of global wealth in Australia. Certainly, the booming demand for commodities has helped, he says.

"But the wealth comes in a lot of shapes and forms."

Apart from the handful of lottery winners, the prerequisite for building wealth is either being successfully self-employed, having a job with a high income or receiving an inheritance.

Yet plenty squander their income without having much to show for it.

Those with discipline who get good advice and take full advantage of Australia's quite generous tax system for borrowing to invest tend to do the best, Alexy says.

He says successful long-term investors are those who preserve their capital with good asset allocation and "never try to hit the big home run".

Andrew Inwood, the founder of brandmanagement, which conducts market research for the financial services industry, estimates that one in four of Australia's millionaires was born overseas.

"Migrants with money used to be mostly from Europe but are now from Asia and even the Middle East and Africa," Inwood says.

He says another striking feature of Australia's millionaires is that about three-quarters own their own small or medium-sized businesses and more than 70 per cent are tertiary educated.

PATIENCE

Doug Turek, the founder of high-end financial planning firm Professional Wealth, says wealth is driven by age, income and a few habits or traits - the main one being patience.

"Barring a few dotcom or iron ore millionaires, it is very hard to accumulate assets quickly; you need time for these things to build. It doesn't necessarily matter if your investment focus is strictly shares or direct property, or a mix of those things or even building a business. The key is having a disciplined focus over a long period of time."

Turek has developed an online survey (www.wealthbenchmarkets.com.au) where people enter their financial details anonymously and in return are told how their wealth compares with others of the same age and income.

More than 90 per cent of the participants in the survey are male. "Males seem to be picking up higher income roles than females," Turek says.

"There is plenty of other research to show that women, because of their time out of the workforce and inequalities in roles and promotion, are not as wealthy as men."

However, Turek says the marked predominance of wealthy males in his online survey may be partly because men are more comfortable than females in sharing their financial information, even though it is given anonymously.

"It is a male-dominated wealthy world," he says.

One of the key determinants of wealth is the family situation. "Being together and not divorced is a very strong success indicator because of the tremendous financial costs of separation over a lifetime," Turek says. "If you have been divorced, your net worth will only grow to three-quarters of those who are not."

PENNY PINCHERS

Inwood, whose company recently conducted a focus group with wealthy people, says some millionaires enjoy an extravagant lifestyle but most are modest in their spending. They tend not to spend that much on clothes and holidays, and are generally "tight" with money but will spend on quality things.

Turek says working overseas is also good for building wealth. "We have found that those that have spent time working overseas have a higher net worth than those who have not.

"You can think of professionals who have worked for a law firm in London or for an investment bank. Then there are those who have grown up in another culture and economy, and have come to Australia as a wealthy migrant."

It is not only those on particularly high incomes that have become wealthy.

Inwood uses a lower threshold for the definition of a high-net-worth individual than many other researchers. His definition is those with assets of more than $450,000 outside of their homes and superannuation. Recent research by brandmanagement shows that about half of them earn less than $100,000 a year.

They are those in their 50s and 60s, the baby boomer generation who have enjoyed rising house prices during the 1990s and 2000s and have good savings and investment habits. Home ownership has given them a springboard to borrow and invest.

Now that house prices are much higher than when the baby boomers first got onto the property ladder, it remains to be seen whether younger generations will fare as well.

SOURCE: John Collett - The Age



Mon, 28 July 2008
7 Cash Flow Steps to a Healthy Budget
The word budget can strike fear into even the strongest of people. If there is one thing very few people are ready for when they leave the safety of home for the first time it is dealing with money. There are not too many people who even know how to balance their chequebook after they open their first chequeing account. So creating a budget can be a scary proposition for anyone who isn't good at keeping track of their money.

But if we look at a budget in a different light then maybe it will be easier to live with what it is. And all it is is a cash flow plan. All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around.

Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget. Start with a piece of paper and a pencil; you can save those fancy budgeting software packages for later.

1. Write down your monthly income. If you are a salaried worker this should be easy. If your income is not that steady then add up the past three months worth of income and average it by dividing by three. This will give you a good starting point.

2. Start writing down all your monthly expenses. Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.

3. Here's the scary part for most people. Subtract the expenses from the income and see what's left. You will either have a positive cash flow or negative cash flow. Unfortunately in this day of increasing debt most people have a negative cash flow.

4. Once you have your monthly cash flow laid out in front of you you can start assigning your money to your expenses. As you make those payments throughout the month write them down to see how your spending lines up with what you have budgeted for that particular item.

5. If you have a negative cash flow then you can start looking at everything you have written down and find areas where your spending may not be in the best interest of you financial goals. As you do this you can free up money for more important financial considerations.

6. The first time you do a cash flow plan it probably won't work out quite right. It normally takes about three months to get everything working right while you figure out where your money has been going every month. Be patient with your budget and before long it will start working and you will regain control of your money.

7. Once you are comfortable with your written budget and you have better control of where your money goes and what it does then consider investing in some budget software such as Quicken. It can make your cash flow plan much easier and with the added features like retirement and tax planning it can give you a solid financial future.

By using these 7 cash flow steps you can begin your budget quickly and easily. Only by taking back control of your money can you improve your financial future for you and your family.

Written by:Andrew Bicknell



Tue, 05 August 2008
Ten Ways to Thrive in Uncertain Economic Times
Even in the worst economic environments some people will be more successful and resilient than others. Why? Because some people simply have a better psychological relationship to earning and spending money. This allows them to make the most of the opportunities around them and avoid common mistakes.

If you want to weather uncertain economic times and build a strong wealth foundation, you need to have the best relationship with money you possibly can. Here are a few tips to help you do just that!

1) Study Success, Don't Focus on Failure.

Most of us know plenty of examples of people who do not make enough, save enough, or who use money poorly.

How many examples of prosperous, successful people can you easily call to mind?

Decide what true and healthy prosperity looks like to you.

Then interview people, watch the news, and collect examples until you have a list of 50 wealthy, admirable, and inspiring people. Write this list down.

When you feel discouraged or unmotivated - read your list.

You will notice just by doing this that you see more opportunity and you are able to impress your boss or close more sales without even trying hard.

2) If In Business for Yourself, Collect "No Thanks" Responses, Don't Try to Get Clients.

In a tough economy, we often get scared and push too hard.

Often this can make it harder to get sales.

Instead, make a game of how many calls you can make, free consultations you can offer, talks you can give, articles you can publish, how many ways you can improve your product or service, etc.

Assign yourself points for each activity. Play with someone else. When you both get enough points, go do something outrageous and fun.

When you focus on the "no" not the yes you get less discouraged and stay more consistently engaged- which is particularly important when you are trying to sell in a tough market.

3) If You Work for Others, Don't Try for a Raise or a Better Job.

Instead try to figure out how you can add more value and make more money for your company.

Make it a game - how much better can you do this month than last? Document your efforts and your results.

Then you will be in a good position to ask for a raise or to present your case to a better employer.

4) Be a Language Detective.

What are you and others around you really saying about money?

Do you talk about money struggle, how money can be a pitfall or the evil ways of the rich?

Do others around you talk that way?

Listen and learn, and then change the messages you speak and hear to support your new core beliefs.

You will feel better and others will notice the change too.

5) Forgive Yourself Unconditionally for Your Money Past.

Fear and negativity from past experiences will affect the unconscious signals you send out to others as well as your own confidence and self discipline around money.

Even if you are not aware, of it a bad attitude about money could be affecting your opportunity.

To start a serious change, create a forgiveness letter to yourself and read it aloud to yourself every night for 30 nights before going to sleep.

You may also wish to talk with a coach or therapist about issues that come up as a result. This will help clear your way psychologically for new abundance.

6) Stop Making Money a Secret.

Tell someone you love about your debt or your earning goals.

When you don't talk about what you make, what you owe, or what you spend, and you are afraid to ask others about their money - you increase the shame and confusion about it.

Challenge yourself to go talk to five people about money - ask and tell all and give yourself the gift of real world perspective.

7) Stop Moving the Goal Post for Your Projects.

Some people say they want to put $5000 in savings, but when that goal has been met, it quickly becomes "not enough."

Give yourself the room to appreciate what you have done and accomplished. Make a list of 50 "successes" you have had over the last six months and keep it handy.

This will help keep you motivated and moving. If you want to move on to bigger goals, make sure you know that they are separate goals and not extensions of previous ones.

8) Make Saving Money a Reward.

Whenever you do something wise or good, take one dollar and put it in a jar.

Let this positive energy stay in there and grow for six months to a year. Then take out your savings and invest it in something that will have a long-term impact on your happiness (for example: education or training, savings, investments or anything that will have a long-term impact on your net worth.)

9) Focus On Quality Not Price.

Try not to haggle very often. In many cases, this creates an unconscious belief in lack. Either a thing is worth the energy or money is being asked or it is not. If it is, give it willingly. If it is not, look and ask for higher quality or a more satisfying purchase - not lower price!

10) JUST DO IT!

Complete those tasks you know are undone and are nagging at you and draining your mental and emotional energy. You know you need to return those library books, call your aunt, move your 401k, change your insurance, or whatever your personal procrastination items are.

The more unfinished business we have the more impulse spending we tend to engage in. Unfinished business leaves us feeling drained and keeps us in a state of inaction and denial. Both things are bad for your money. You will find that when you complete (or consciously decide to take off your list) unfinished to-do tasks, your start making better money choices.

Experiment with these ten tips and you will end up BOTH spending less and earning more. And that after all is how wealth is built in ANY economy!

Written by: Mari Geasair

Mon, 11 August 2008
Personal Loans vs credit cards: what’s your best option?
The term "personal loan" encompasses many different types of products with different names, all designed to perform a similar function.

The early days of personal loans saw little choice available to consumers, with most loans having similar interest rates, fees and conditions. These days, personal lending has evolved, giving borrowers more choice about what to spend their loan money on. Unsecured loans like holiday loans, debt consolidation loans, home improvement loans, and secured loans such as car loans all now fall under the personal loan banner.

However, in this age of 'plastic money', credit cards are beginning to compete with the personal loan for many smaller or medium-sized purchases. With competition fierce among lenders, credit card fees have been slashed, with many credit card interest rates rivalling those of the traditionally lower rates found in personal loans. Where credit card interest rates have dropped substantially over the last couple of years, personal loan interest rates have not, remaining relatively static in comparison.

But what about the larger purchases, such as a car, motorcycle or boat? Many merchants will not accept a credit card in payment for such a major expense and this is where personal loans still hold their own.

Personal loans vs Credit cards

Aside from the obvious name changes designed specifically for particular purchases, personal loans have had to make certain changes to compete in the ever-expanding personal finance market. Immediate loan approvals, redraw facilities designed to compete with credit card cash advances, flexible repayment options and lower fees all combine to make the average personal loan more attractive than it was in the past.

One problem with credit cards that’s not immediately apparent is that of 'easy money,' where funds are available constantly. This can be problematic for many consumers who have difficulty controlling their spending habits and end up much further in debt than they originally intended. Purchases made with a personal loan, on the other hand, tend to be premeditated, taking away the temptation to spend more than you can afford.

One important area where personal loans and credit cards now compete is in debt consolidation. Debt consolidation is particualry popular after the Christmas period, when spending limits have been stretched. Consumers now have a choice between a debt consolidation personal loan, or credit cards offering low interest or 0% balance transfers for up to 6 months on balances rolled into the credit card.

The future of personal loans

With a sharp rise in credit card applications in recent months, it may seem as if personal loans are in the early stages of extinction. But is this the case?

According to the credit agency Baycorp Advantage, the July to September quarter of 2006 showed a marked increase in applications for personal loans. Compared to the same period of the previous year, applications rose by a substantial 6.7%. Good news for the future of this dinosaur of financial products.

Continued evolution is essential to the personal loan if it wishes to remain in existence and compete with the flexibility offered by the credit card companies. Redraw facilities need to be developed and improved and consumers need to be offered greater flexibility in their repayment options and schedules. A lot of movement has already taken place in this direction, and if it persists, the personal loan will no doubt continue to have an important place in Australia’s personal lending market.

Source:http://www.moneybuddy.com.au

Mon, 18 August 2008
Which Credit Card is Right for You
If you're in the market for a new credit card, there is a bewildering array of cards to choose from. There are even more incentive offers, so how can you decide on the card that is best for you? Here are some of the factors to consider.

What Kind Of Payer Are You?

The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card.

If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.

Taking An Interest

Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.

Compare Credit Cards

Want to know which card is right for you? Why not check out our credit card comparison page to view a table comparing features and benefits of some of the most popular cards. Click here.

Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.

Look At The Fees

There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.

Getting Some Cash Back

Some credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending – and spend it again with a variety of high street and online retailers.

Paying attention to these items will help you to choose a credit card that will match your financial situation.

Source:Amanda Cherry



Sat, 23 August 2008
Bad Credit Personal Loans
If you need of money but you don't want a complicated financial transaction, bad credit personal loans could be the right choice for you. Bad credit personal loans are designed to provide money for applicants with little requirements, have very flexible repayment terms, and can offer needed financial relief in a crisis.

Unsecured Loan or Secured Loan

Personal loans come in two forms: Secured and unsecured personal loans. Secured loans are guaranteed by the borrower using a personal asset such as a real estate or a car as collateral for the loan. Unsecured loans on the other hand don’t require any collateral. Each choice has its own set of advantages and disadvantages that must be weighed when choosing your personal loan.

Secured loans provide less risk for the lender, because of the collateral, and this allows for lower interest rates, longer repayment periods and lower monthly payments. Unsecured personal loans, on the other hand have inherintly higher risks for the lender and thus higher interest rates, higher monthly payments and shorter repayment periods can be expected.

Credit - Know Where You Stand

Knowing your credit report before applying for a loan is crucial to know on what financial footing you stand. Required by law, credit reporting agencies are required to provide you with a free copy of your credit report at your request, this is a golden chance to find your score and plan for improvement.

Get your free copy and correct any errors or inaccuracies, act immediately and contact the credit agency. Credit Agencies are prepared to deal with these inquiries and are required by law to service your request for revisions.

Really Bad Credit Should Not Prevent You

Discovered that past financial mistakes have ruined your credit score? Don’t worry. There are many people in the same situation and the financial industry has shaped solutions for people with really bad credit, no credit, frequently delinquent credit, awful credit, or even for those who have gone through bankruptcy.

There are many lenders now offering personal loans for people with really bad credit, the rates will not be as competitive as regular personal loans but they are an excellent way to begin to rebuild your credit and can be a better source of liquidity than credit cards. The interest rate on credit cards can be 50% higher than a bad credit personal loans and the monthly payment of a personal loan is often fixed so you need not worry about market fluctuations.

Make sure you use personal loan money wisely to get yourself back on your feet. Pay off high interest outstanding debts and credit cards balances. Get back on track paying bills on time in order to immediately improve your credit score. On time payments monthly on the new personal loan will even help to improve your credit. Stay on track and you you will be able to move from bad credit to good credit and all the added benefits that good credit provides.

A word of caution. Avoid requesting loans and credit cards you cannot pay back. Keep an eye on what your monthly payment is expected to be. Learn how to make a budget and stick to it. With a little planning and you should be able to take control of your financial life and increase your wealth rather than increase your debt. Choose a personal loan offer that is manageable under your circumstances and be realistic. Debt anxiety is not fun, and the benefits of living debt free relieve enormous unneeded pressures. Be smart and make wise decisions when your financial freedom is at stake.

Source:ReallyBadCreditOffers.com



Fri, 29 August 2008
Personal Loans: For Any Of Your Financial Needs
It is not always possible for every individual to have quick access to cash at the time when an urgent requirement arises. A personal loan is friendly and most suitable option to fulfill all your requirements especially for those that have fixed monthly salary. These loans are designed to provide funds to the people for their personal use.

Personal loans are a perfect option for those who are in need of a small amount of funds for a comparatively smaller time period. They provide aid to the borrowers from all financial troubles.

These loans can be extended to anyone in form of secured or unsecured personal loan. In case of a secured personal loan you are required to pledge your valuable assets such as house, automobile, real estate or any valuable documents as collateral against the loan amount. In case of secured personal loans, borrowers may apply for anything from £5000 to £75000 for a term of 5 to 25 years. If you want to have big loan amount, long repayment period and low rate of interest then secured personal loans will be an ideal option.

For the unsecured personal loans there is no need to pledge any collateral against the loan amount. Both homeowners and tenants can enjoy the benefits of unsecured personal loans. In case of unsecured personal loan a borrower can get an amount £1000 to £ 25000 for a term of 1 to 10 years. However, unsecured option takes lesser time in approval because of non evaluation of collateral.

The credit status, income, repayment ability and value of the collateral deposited are some important factors which decided the terms and conditions offered with the loan offer.

The applicant can use the amount for various purposes like marriage, education, sponsoring holidays, debt consolidation, making home improvements, purchase of car, purchase of durable goods and expansion of business. Personal loans are multipurpose; they cater with all your monetary demands. Thus, the personal loans offer freedom to people who want to get rid of their monetary problems.

By: Mary Jones

Mon, 01 September 2008
Credit Card Scam Prevention
In the undoubtedly complicated financial world today, we all rely on credit and online access to credit accounts to do business and get around. Those of us that don't use credit cards as a habit still have one for emergency use and for convenience so we can reserve airline flights, hotel rooms or rent a car. But what about when someone breaches that information? What you have then is something called credit card fraud.

Credit cards are a huge part of today's way of life. With the increasingly electronic world of finances and bill paying today, credit cards are almost a necessity for anyone who wants to keep up with the times and enjoy the convenience and ease of this method of payment.

Credit cards have made themselves a necessary "evil" in today's world. Credit cards offer such ease of use and a convenience unmatched by other forms of payment, but that also comes with abuse by both the cardholders by misusing them, and by thieves who are up to no good that will profit from getting your information off of a card. As a result, there are increasingly more reports of credit card scams today.

These scams can range from identity theft to people hacking into our computers to obtain credit and financial information. In one recent credit card scam, a person calls the home of the credit card owner. Identity thefts may pose as a representative from security department or fraud prevention department of some company, in order that they may get personal information from you.

They claim they have flagged your account for unauthorized purchases and they want to give you a credit on your account. The caller then says he needs your information, verifies your address and name on the account and asks for the 3 numbers on the back of the card. These 3 numbers are the security code that proves that you are in possession of the card.

Within a few days, the caller is fraudulently charging on your account using the security code numbers that you have given them. So, consumer beware. Never give out personal or credit card numbers and information to anyone that calls you and aks for this information. This is not standard procedure for most places of business, unless you arranged this with a company for payment.

The credit card companies won't call and ask you for this information because they already know it and have it on file. If you encounter this situation, hang up and call the police and the credit card company. Con artists may use a variation of this type of scam as they may have part of the information from your account and then they're calling you to"verify" the remainder of it so they can fraudulently use your credit card.

There are some unscrupulous scams in the form of guaranteed credit and loans via emails on the internet. Many emails of this nature are simply looking for you to give up your personal information online to them so they can use it for identity theft.

To protect against internet style credit scams, keep your computer safe with updated antivirus software, antispy software, a firewall and an antiphishing toolbar. Phishing, where a criminal sends an email that is supposed to be from a reputable bank is becoming more popular, and you want to make sure you do not respond to these emails or give any personal information to them. The threat of something known as identity theft, which is closely tied to credit card fraud, is so abundant today that many singular companies are offering a guarantee to protect you from it for a monthly or yearly fee.

The best way to protect yourself without resorting to a monthly bill is to know what to beware of. If you lose your wallet or chequebook, or if it is stolen, cancel all credit cards and accounts and report it immediately. Shred all personal documents and information before disposing of it to prevent dumpster diving scams.

People who steal identities are saavy, and you want to make sure you don't make their job easier by leaving around payment stubs, unused credit card offers and other items with personal information. A paper shredder may even be a good idea. Another scam is a con artist posing as a person with a valid reason to obtain personal information. Unfortunately, identity theft can also be done as the result of an inside job by family members, friends or even a babysitter with access to your personal information.

Means of prevention of identity theft are cancel all inactive accounts, sign your credit cards and don't give out personal information when using your card.

You can request electronic versions of bills and statements and direct deposits of your payroll cheques. I know it's hard to keep up with sometimes (this is why you should probably limit your number of credit cards), but it is prudent to check your credit card statements every month in order to catch any possibly fraudulent charges or suspicious activity.

Written by:Danna Schneider



Thu, 11 September 2008
When should I use a personal loan?
Unsecured personal loans can really help in a pinch. If your savings are low and your car breaks down, such a loan can patch up your life.

Or maybe you're going to be buying a big-ticket item with a cheque and you need backup money to cover a short-term hole in your bank account.

Part of their convenience is how quickly they can be approved - usually in one banking day, three tops.

Financial institutions don't care much about how you use an unsecured personal loan as long as you are a good candidate to pay it back.

The hitch is that because the borrower has no security, unsecured personal loans are more expensive.

These days, even the new crop of low-rate credit cards can be cheaper than unsecured loans.

And besides interest, watch out for annual service or maintenance fees on the loan that is either a flat fee or a percentage of the lump sum.

On the plus side, greater competition in personal loans from smaller financial institutions like the credit unions means there is a huge variation in the interest rates being charged - from 9 to 15 per cent.

Sun, 21 September 2008
The Four Golden Rules Of Personal Finance
As long as you are alive, you are a player on the field of the money-game, and you need to know the basic rules before you get tagged by the experienced players.

Many successful people have mentors to guide them in learning the skills that lead to achievement, and I’ll do my best to offer you some critical personal finance perspectives.

They say that life is a school where you learn the lesson after the test.

The same thing applies to money, but you can’t go back in time to fix catastrophic financial mistakes that you have made over time.

Rule #1 To earn money from money.

The only way to escape becoming a wage slave for the rest of your life is to set aside savings.

The profit on your savings can be used to increase your lifestyle spending, reduce the number of years until you retire, or allow you to actually have any retirement at all.

How well are you doing so far toward saving and getting it to earn money for you

Every dollar that you spend eliminates its ability to earn money for you in the future.

I am not recommending that you stop eating at restaurants and going to movies, I am recommending that you use some common sense, like looking at your four biggest expenses over the last few months and aggressively finding a way to reduce them.

The biggest obstacle for the first rule is personal debt of any kind (other than a mortgage for your home) or a lease of any kind.

Every personal debt that you incur reduces your net worth which could have been working for you over your life time.

Acquiring personal debt is exactly like putting a large hole in your wallet. In the money-game, a huge transfer of wealth occurs between the ‘Haves’ and the ‘Have-Nots’ over the words, “I can afford that monthly payment.”

Here is a hint the “Have-Nots” are the ones who make that statement.

So please don’t ever look at whether you can afford a monthly payment to make a purchase; pay in cash after you’ve saved for the item. [Everything that you buy with a 0%-interest payment plan must be over-priced.

Behind the scenes, your payment contract is sold to a lender with an interest rate, and retailers don’t do this without building-in an acceptable profit for themselves.

Ask retailers how much the item will cost if you pay in full, and you could get a lower price.]

Rule #2 Always keep your finances under control.

The first step in losing financial control and spiralling into debt and money problems is simply not dealing with personal finances.

Prepare for catastrophic financial accidents with health, life, disability, and auto insurance.

Plan and save before you buy something.

Create a balance sheet for yourself at least once a year to see how you are progressing. Pay every bill on time, or contact the creditor to tell them what is going on and make a partial payment.

If you are temporarily unable to handle any of this, ask for some help immediately and find someone trustworthy who will do this for you.

The most common source of financial trouble is a trauma in your life.

This can be a health problem (large expenses or unable to work), an emotional problem (divorce or loss of loved one), or a financial problem (losing a job, cut in pay, relocation, unexpected expenses).

Whichever the source may be, it leads to three emotional problems the first is denial, the second is being overwhelmed, and the third is hopelessness.

Denial causes people to not open their mail and continue spending as usual, and being overwhelmed paralyses people from getting assistance and dealing with the situation.

For example, if you just lost a loved one, balancing your cheque book and paying bills is not high in your priorities.

Unfortunately, tiny amounts of debt grow with interest and penalties into seemingly insurmountable mountains of debt; leaving you with loathsome options such as bankruptcy, poor credit, declining lifestyle spending, and added stress that you bring to relationships and work.

Rule #3 Pay attention to the finances of the people with whom you spend the most time.

Whether they are relatives, friends, or co-workers, these people have the most impact on your financial life. Do they consistently follow the first two rules of the money game Do they earn about the same money as you

If the answer to either of those is “no”, then I recommend that you start spending a little less time with them; and this is why. If they don’t consistently follow the first two rules, it is unlikely that you will either.

You unconsciously model the people around you, and the more people you are exposed to that don’t follow the first two rules, the more likely that you will unwittingly follow them.

No one thinks they are ‘trying to keep up with the Joneses’, but we all do it to some extent, and this is the mechanism.

On the other hand, if they earn a lot more money than you, you may rack up a lot of debt trying to keep up with them (meeting them at their favourite expensive restaurant, joining them for another expensive vacation, buying a new car because yours is the junker among all of your friends, etc.)

On the other hand, if most of your friends earn a lot less than you, you will turn into the group’s banker.

For example, you’ll find yourself in the pattern of putting your credit card down to pay for dinner and they’ll all say they’ll pay you back later, but 50% of them never do; and they don’t mind taking advantage of you because, after all, you earn a lot more than they do.

Or, you and your friends need to pay a deposit for renting a house and they expect you to write the checks because you have the money available and they do not.

The neighbourhood that you live in also creates financial pressure to violate the first two financial goals.

Your neighbours are likely to become friends (and I’ve already gone over this), but they also influence the size of your home, extent of your landscaping, price of furniture, and the size of your TV.

So pay very close attention to the finances of your neighbours – if you don’t like how they are measuring up for first two rules, move somewhere more in alignment with your financial goals.

If your family and friends, don’t measure up financially, find some additional people to spend time with that have financial habits that you’d like to emulate and learn from.

I have friends with a wide range of income, but it is much more difficult to follow the first two money rules when I am with the extremes from my own income.

You’ll just find it easier to reach the next rule when the peer group that you hang out with aligns closer to your economic level.

Rule #4 Accelerate the other three rules

Add to your savings by increasing your income through advancing your career.

It doesn’t matter whether you enjoy it; it is a means to an end – with the end being progress toward the fulfilment of rule #1.

Increase the amount that you save by aggressively lowering four of your highest expenses. Start spending time with people that talk about investing money and are systematically building their wealth the fastest.

The combination of all four of these rules will hopefully offer a next-step for you to take today to start getting more ‘wins’ in the money-game.

About the Author:

Francis Kier has an MBA in finance and shares his two decades of experience with investing and personal finance.



Sun, 28 September 2008
A Useful Guide On Home Mortgage
It would be in your best interest to go for a mortgage plan that does not include the payment of a private mortgage insurance. Private mortgage insurance is a common feature of a mortgage plan, especially the ones that are traditional in nature. Private mortgage insurance, more often than not, drains your pockets and leaves you with practically next to nothing in terms of savings.

It is important that you understand the function of mortgage brokers. A mortgage broker is an individual who is in the best position to give you advice about mortgage home plans. You can go to a mortgage broker to obtain the best mortgage plan for your needs. Never think you can do it all on your own if you aren't skilled and experienced in such matters.

The strength of your financial ability ultimately determines the repayment period of a mortgage loan. A low income earner often has a longer repayment period because he or she pays lower for monthly dues. A high income earner often pays higher each month for his or her mortgage and as a result, has a shorter repayment period.

If you want to apply for a mortgage loan in California, you will firstly have to be a resident of California. Mortgage loans in California come with different interest rates and payments. Before you apply for mortgage in California, you should make sure that you have analyzed your economic strength properly.

If you don't take the time to search for low interest rate mortgage loan plans, you may end up with a plan that you will regret. Getting a mortgage loan plan that has a low interest rate demands intensive search and a little bit of extra time. To get the best mortgage loan quotes at the fastest time, you should make use of real estate websites online.

Mortgage refinance options depend on a number of variables such as the equity of your home. You must have a steady source of income to refinance your mortgage. Many people have different reasons for refinancing their homes. You should have a good reason for refinancing your home mortgage.

Do not search so much for low interest mortgage loans that you forget to search for other features such as monthly payments. The terms and conditions of any mortgage agreement you enter into matters a great deal. Avoid mortgage loan deals that come with too much consequences and penalties.

There are lots of online mortgage companies that are leading mortgage providers. For the internet enthusiast, the right mortgage loan plan is simply a click away. Intensive search on the internet will enable you to strike a gold mine in mortgage loan information.

By: JohnJamespnp



Mon, 06 October 2008
Personal Loans: Your Chance To Avail Adequate Finance
Not every one of us has the ability to fund big-budget ventures through our personal financial resource. We have to seek recourse to external monetary aid sometimes. Not that provided by your family and friends which are limited amounts; but the backing provided by professional lenders. The capital that we receive from them is known as personal loan.

Personal loans are funds that may be obtained from various avenues- from high-street private lenders to banks. They are the monetary help through which your personal projects can be financed. Purchasing a car, buying a house or renovating the one you are living in, paying off your debts, funding the college education of your kids, medical expenses, wedding expenses and holiday expenses are only a few instances of what a personal loan can make happen.

There are two basic forms of personal loans. They are:

• Secured personal loans

These are loans for which you have to provide collateral/security. Collateral/security simply means a personal asset that you are pledging against the loan- like your home or property. You can borrow an amount up to £100000 for a repayment term up to 30 years.

• Unsecured personal loans

You do not have to pledge your assets for this option because it does not require collateral/security. You can borrow any amount up to a maximum of £25000. These loans carry higher interest rate than the other option but they are better for smaller requirements as term does not extend beyond 10 years.

While choosing options, you should weigh the pros and cons of each. The one which is more affordable and which can be paid off comfortably on your repayment capacity is the better one.

Personal loans are provided by a lot of lenders. Most of them have their official websites on the web where they provide free loan quotes. Take advantage of this facility and compare as many quotes as you can in order to find affordable rates. Don’t worry; the application is non-obligatory so you can apply without finalizing the deal.

By: Pamella Scott



Thu, 16 October 2008
The Real Life Effects of a Bad Credit Rating
Many of us can tell stories about how a bad credit rating affected our lives in one form or another. There are some that claim that a bad credit rating can affect every aspect of your life and force you into pits of fiscal and emotional despair the likes of which you will never encounter again. Bad credit makes purchasing something on credit virtually impossible and is generally caused by being unreliable in your prior credit payments and having a consistent record of not making payments. In other words, in most cases the person dubbed with bad credit likely brought it on themselves.

The reality of having bad credit is that the option was always there to have the opposite: good credit. If payments were made on time and the proper considerations were taken, the situation of bad credit would not exist. Unfortunately, if you find yourself in the situation with having bad credit to the extent that it becomes financially damaging and threatening, you have probably done all of the kicking of yourself that a person can handle. The point is not to beat yourself up but rather to learn to improve on the situation by exploring what aspects of life bad credit threatens and learning how to make better choices next time.

The only way to fully recover from a bad credit rating is through time. It takes the power of time to right the ship, so to speak, and repair the damage done by being fiscally unreliable. It is a lot like regaining the trust of a loved one after a painful betrayal. Suppose you had planned to purchase a car, for example, and you apply for a loan. The likelihood of getting the loan is significantly lower than it would be if you possessed good credit. On top of that, the interest rate on the loan is likely to be extremely high in comparison to the possible lower rates offered to those with excellent credit. This makes purchasing your automobile an ordeal that inevitably becomes more complicated with bad credit.

One way to stay on top of your credit rating is by paying your bills consistently and on time

Source:www.cashdoctors.com.au

Thu, 23 October 2008
Cheap Personal Loans: Where To Get The Cheapest Of Them All
Since everything in terms of financial value is getting more expensive, lots of people choose to spend their money on cheaper stuff. There are plenty of chaps out there after the cheapest clothes, or eating the cheapest food possible, or getting hooked up with the cheapest girl around (a practical gal, not the other kind). With this type of lifestyle, anybody will be able to scrape and save a few extra bucks each month. These aren’t the only “goods” sought after, no sir. Getting their hands on cheap personal loans would also help out with their quest on becoming the ultimate penny pincher – why spend anymore than what you have to? When it comes down to choosing a lending companyto borrow from, we just don’t look one up and borrow from them, we do a little detective work first.

At first, it may seem to offer the best cheap personal loan ratesand terms, but there just may be some creditors offering something cheaper. So as a smart and thrifty cheapo, you’re gonna have to stick with the best one you stumble upon. Here’s a little tip you could use to narrow down the search for such a service: check out the web for online lenders. The web can be used for more than browsing naked pictures of your favorite celebrities (shame on you) and other things of nonsense. The Internet can be used as a search tool for finding cheap personal loans – why are they cheap here? Well being online does cut down on operational expenses, and also means that there’ll be swarmed by hundreds of other competitors.

So to be competitive, some cut down their loan rates and offer more flexible terms. The process can become “cut-throat”, where online lending companies slit their wrists to build their clientele list. Others see them lowering their rates and bending their terms, so as to not be left behind, they go with the flow and do the same (as to not get left behind). Eventually some poor suckers hang themselves, yet build their core of customers (debtors like you). Being online also means that they’ll be processing and approving your application for their services a lot faster, taken that you do get approved in the first place.

One thing that you can do to get a more affordable loan is to avail a cheap secured personal loan. Here you’ll be putting up a particular asset as collateral. What that does in turn is lower the rates and grant you a longer payback period. But default in payment means you may lose the collateral you put up, so being sure that you’re capable of paying all back in the first place is absolutely mucho important. But if you don’t have enough balls for taking the risk, you can always avail a cheap unsecured personal loan, which doesn’t require any collateral whatsoever.

The only problem here is you face here is higher interest rates plus a payback period that ain’t that easy to bend (shorter too). When you do pull out one for yourself, you may do whatever you want to with the money you’ve borrowed (legal of course).

Source: Financezine.com



Wed, 29 October 2008
Five Worst Credit Card Mistakes
Listed below are five worst mistakes most credit card holder make. If you can avoid these mistakes, you will benefit a lot.

1. Too many credit cards:

In most cases, a single credit card is sufficient to meet all the credit needs in a person's life.

More than one card leads to greater temptation resulting in inviting greater credit risk over a long run.

Multiple credit cards or credit accounts leave the lender with a question that the account holder must be spending all the money on the card.

2. Misunderstanding introductory rates:

Introductory rates on them are often low.

Many people get enticed by these rates. However, they give least attention to the rates that are levied once the introductory period is over, which can be as high as 20 percent.

3. Not reading the fine print:

This is the most common credit card mistake committed by a majority of people.

This is one strategy that companies apply to escape from legal entangles and also attract customers.

Most of the terms and conditions, including the interest rates, at the end of the introductory period are written in a fine print at the bottom or at the end of the brochure.

It is important to read these conditions in order to have a better understanding about the benefits offered by a particular card.

4. Making minimum payments:

This is another common mistake committed by consumers.

Credit cards should be used only during emergencies.

People should understand that credit cards offer money on credit but are not a form of income.

It is important to pay off the credit at the end of every month. With minimum payments, the trouble is going to increase further.

This is because the interest rates on the balance amount will be higher making it difficult to pay off loans for a long time.

5. Paying bills late:

When one wants to pay the credit card bill, it is better to pay that well ahead of time.

Most of the companies charge late-payment fees.

Apart from this, late payment of bills gets reflected in the credit reports, thereby making it difficult to obtain loans at better terms when one goes for any loans in the future.

Source:Pauline Go



Sat, 08 November 2008
Get Instant and Hassle Free Cash with No Fax No Paperwork Payday Loans Online
No fax no paperwork payday loans online is easily available through internet. These loans are designed in such way that the borrowers can avail them in hassle free way.

As the name suggests, no fax no paperwork payday loans online, are easily approved loans. There is no need to search your papers. Neither you need to fax loads of papers to the lenders to approve your application. Instead, the borrowers can avail the loan easily. The best feature of this loan is that the loan can be availed to the borrowers online. Like any other loans, you have to fill an application form and submit to the lender. It is better to research for a cheaper loan deal. These loans are approved very fast. Within few hours of approving the loan, the amount is transferred to the borrower’s bank account.

The loan amount you can borrow through theses loans varies from $1000 to $1500. The repayment tenure varies from 2-4 weeks. If you cannot repay the loan in time, you can ask for loan term extension 3 days before loan due date. The lender can extend the loan term for 15 days but you will be charged extra fee for that.

These loans are available for anyone who is adult and has a stable job. Bad credit holders are eligible for these loans but have to pay high interest rate than their counterparts.

No fax no paperwork payday loans online is easily available. These are convenient loans which can be availed sitting in front of your computer. Online application forms are easy. You will have to fill with the application form with personal details and bank account details. After the loan is approved, the money is transferred to the borrower’s bank account within 24 hours.

Source:By Expert Author: Jelson Rawling



Tue, 25 November 2008

There is no limit to our desires but there is always a limit to our financial resources. Well at least as long you are not Bill Gates. Given our current economy, everything costs more. Gas prices seem are on the highest, food, clothing and education. Everything costs us more than it did in the past. Because of this and because of many other reasons, there comes a time when one needs a personal loan to take care of different needs.

There are two major types of personal loans; secured and unsecured personal loans. Regardless what kind you choose, personal loans help us financially to deal with our personal needs.

You can apply for a secured personal loan if you have collateral to offer. It can anything, like a high value car, real estate property or your own house that you live in. With secured personal loans, you get to pay low interest rates but if you fail to repay the loan, your lender will have protection by law to sell your property to recover their money.

With unsecured personal loans, there are no collateral strings attached but you do get to pay high interest rates and the repayment schedule is basically short term. So if you do not want to offer your property as collateral or say if you don't have anything to offer as collateral, unsecured personal loan is there for you.

You can borrow a personal loan if you need cash to decorate your house, to finance a car, fund your teen's education, going out of country to spend some quality time during your vacations. Basically, anything that you can think of. You can even borrow a personal loan to consolidate your debts into a single, manageable debt with debt consolidation.

Personal loan is a good loan option when you need some cash in order to meet your personal requirements. You can find a lot of deals on the internet. Sites like bad credit loan can be a good start or you can search on a search engine like Google or Yahoo. Get free quotes from different lenders and compare them. Choose the option that suits you best.

Source: Credit & Mortgage Index

Tue, 25 November 2008
Personal Loans for Personal Needs
There is no limit to our desires but there is always a limit to our financial resources. Well at least as long you are not Bill Gates. Given our current economy, everything costs more. Gas prices seem are on the highest, food, clothing and education. Everything costs us more than it did in the past. Because of this and because of many other reasons, there comes a time when one needs a personal loan to take care of different needs.

There are two major types of personal loans; secured and unsecured personal loans. Regardless what kind you choose, personal loans help us financially to deal with our personal needs.

You can apply for a secured personal loan if you have collateral to offer. It can anything, like a high value car, real estate property or your own house that you live in. With secured personal loans, you get to pay low interest rates but if you fail to repay the loan, your lender will have protection by law to sell your property to recover their money.

With unsecured personal loans, there are no collateral strings attached but you do get to pay high interest rates and the repayment schedule is basically short term. So if you do not want to offer your property as collateral or say if you don't have anything to offer as collateral, unsecured personal loan is there for you.

You can borrow a personal loan if you need cash to decorate your house, to finance a car, fund your teen's education, going out of country to spend some quality time during your vacations. Basically, anything that you can think of. You can even borrow a personal loan to consolidate your debts into a single, manageable debt with debt consolidation.

Personal loan is a good loan option when you need some cash in order to meet your personal requirements. You can find a lot of deals on the internet. Sites like bad credit loan can be a good start or you can search on a search engine like Google or Yahoo. Get free quotes from different lenders and compare them. Choose the option that suits you best.

Source: Credit & Mortgage Index

Wed, 10 December 2008
Christmas Loans
It can be really disappointing if you are running short on the cash and you can’t enjoy celebrating Christmas with your family like the way you want to. Many of us wait all year for the Christmas to come and shine its colors in the white snowy days and it can turn even the most strong-hearted people feeling low and depressed. Well, you should know that after reading this article, you will never have any financial problems at least in Christmas days. Yup, all thanks to Christmas loans, none of us is going to go through that sad story I wrote above.

By availing Christmas loans, people who are running short on the cash and are finding it difficult to deal with Christmas celebrations can easily get money to meet Christmas shopping and celebration expenses. You can use these loans to buy whatever you want like buying a Christmas tree, spending your money on buying gifts for friends and family or even spend it on improving or repairing your house to get it ready to celebrate the new year! Although if you really do need to redecorate or renovate your house then we recommend you to read a bit about home improvement loans

Christmas loans are short term loans. What this means is that you can borrow the money without having to offer collateral to the creditor. To successfully avail these loans, you must

- be regularly employed for the last 6 months

- have a regular residential address for the last 3 months

- be an adult

- have a current account in your name for the last 6 months

Above requirements might vary depending on your lender but provided that you are covering those basic requirements, getting a Christmas loan is not that big a deal!

Source: Credit & Mortgage Index

Sun, 28 December 2008
Looking For Good Deals On Credit Cards And Loans
At this point, you might be realizing that trying to track down decent credit card and loan offers has become more of a priority. More than ever, household finances are under pressure from the higher costs of living, added bills, and other increases in expenses. With the addition of high payments on borrowed money, you may be in danger of serious financial trouble. Many of the reasons for this present financial situation and cost hikes have a lot to do with how credit markets are behaving across the planet and their affects on borrowing. Specifically, it may means that you will be paying more now for credit cards and loans than you might have been only a few years ago. This doesn’t mean you don’t have options. In fact, if you have enough patience, you can find a really great offer if you weigh your options carefully.

The range of potential lenders who offer broad selections of loans and online credit cards is wider than ever. It doesn’t matter what situation you are in or what your current financial status may be, you can be sure that there are some affordable deals out there for you. The key to making the most of this is by take some time to research a number of lenders so you will be able to determine which lenders offer the most affordable and appropriate deals so you will be able to save money over time.

Thankfully, the internet has done a tremendous amount to cut down the hassles and frustrations than many feel when looking for loans or credit cards. It is possible to review and compare card offers and different lenders in a stress-free environment, such as your personal computer or a library. No more hasty decisions motivated by high-press situations that you might regret later.

Once you can sit down and start browsing and comparing quotes and offers on both credit cards and loans, you might want to begin your search by considering the interest rates. By doing this, it is becomes more likely that you will get the right deal at an affordable price. Spend time learning about credit card and loan interest rates so you can start to formulate potential payments. Rates are dependent upon the borrower’s personal situation as well. Factors like the total cost of the loan, credit status, employment, present financial situation will also have a part to play in the calculation of interest rates.

When you are interested in finding the most affordable options on loans and credit cards, you may want to thin about two additional points. First, you may decide that you would rather spend time browsing individual lending websites and conduct a thorough search. Conversely, borrowers may choose a broader approach by using lender comparison sites to get overviews of services and get quotes by using electronic forms to supply personal information. With these comparison sites, you will want to use more than one to achieve the most market coverage and receive quotes from more potential lenders.

Be sure that you take enough time to research the markets; don’t be in a rush. There really is no reason to hurry and end up making a mistake about rates. The idea is to find the best rates possible on both homeowner loan deals and credit cards.

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