Easy Ways for To Manage Your Money Better

Managing money and being good with money is a lot more than just making ends meet. Having good financial skills can make life a lot easier. The way that you spend your money will have an impact on your credit score as well as the amount of debt that you carry around with you.

manage money

If you find that you are living pay check to pay check, even though you are actually making more than enough then take a look at these ways that you can improve your financial habits and manage your money better.

Give it Some Thought Before You Spend

When you are facing a buying decision, especially when it is a large purchase then you shouldn’t just assume that you are able to afford it. You first need to confirm that you actually can and those funds are not actually allocated to something else.

Use your budget and the balance that you have both in your cheque and savings accounts to determine whether you are able to afford the purchase. However, if you do have the money, it doesn’t mean that you can buy it. You need to consider bills and expenses that you still need to pay before your next pay check.

The All Important Budget

Many of us don’t budget, because we don’t want to have to go through the laborious process of listing our expenses, adding up the numbers and ensuring that everything lines up. However, if you are struggling with your money or you are just bad with money then you need that budget.

A budget can help you to get your spending on track and it really doesn’t take long to do. A budget adds value to your life and you will start to understand your money better.

budget

Now You Have to Use Your Budget

Your budget is useless unless you use it, so make it and use it so that you can manage your money better. Throughout the month, you should refer to your budget to help guide any spending decisions that you may have.

You must also update your budget as bills are paid and as you spend money on expenses. During a month, you should have a general idea of how much money you are able to spend and any expenses that you still need to pay.

What About Those Unbudgeted Expenses

A vital aspect of your budget is the amount of money that you have left after all your expenses for the month are subtracted from your income. If you have any money left over then you are able to use it for entertainment and a treat, but only up to a certain amount.

You shouldn’t go mad with your money, especially if you do not have a lot left or that amount has to last the rest of the month. You will need to make sure that any purchases you make won’t interfere with anything else that you have planned.

Keep Tacking

Smaller purchases here and there can easily add up and before you realise, you have already overspent on your budget. You will then need to track your spending so that you can identify areas where you are overspending.

You can keep receipts and create a spending journal or you can use a phone app for tracking.

Wait…there are still more tips below…keep reading…

Avoid Commitments Unless You Can Afford It

Your income and credit might qualify you for a certain loan, but that doesn’t mean that you have to take it.

Many people assume that a bank wouldn’t approve them for a loan or a credit card unless they were able to afford it. This is assumed because the bank already knows your income and the debt obligations that you have as these appear on your credit report, but they do not know other obligations that you may have that could stop you from making payments on time.

You will need to determine if you are actually able to afford the monthly repayments and if a loan is actually affordable based on your income and obligations.

Get the Best Price

If you want to make the most of your money then you will need to partake in comparison shopping, so that you can be sure that you are paying the lowest possible price for products and services.

You should also take a bit of time to look for coupons, discounts and cheaper alternatives.

save money

Want That Big Purchase? Then Save Up

You can become better with money when you learn to delay gratification and put off those large purchases. Instead of sacrificing important essentials or placing the purchase on a credit card, you should give yourself time to evaluate whether you really need the purchase and time to compare prices.

If you really do need that large purchase then rather save up for it and avoid using your credit card, so that you don’t pay interest on the purchase. Also, if you save instead of skipping other expenses that you need to pay then you won’t need to deal with the consequences of missing payments.

Keep Your Credit Card Limited

If you are a spender then your worst enemy is your credit card. This is because you have the tendency to run out of cash and turn to your credit cards without even considering if you are able to afford to pay off the balance.

You will need to resist the urge to use your credit card, especially when you can’t afford the purchase.

Make Sure You Save

You should try and put money into a savings account each month, so that you can start to build healthy financial habits. With online banking, you can set up an automatic transfer from your cheque account to your savings each month.

If you are not used to managing money, then at the beginning it can be difficult to plan ahead and too put off those purchases until you are able to afford them. However, the more you make these habits part of your everyday life, then the easier it will become to manage your money and you will notice that your finances improve.

Pros and Cons of Using a Personal Loan to Pay Your Credit Card Debt

Are you feeling overwhelmed by credit card debt? Are you finding that you are struggling to make payments? You are able to take out a personal loan to tackle this problem, but before you do, you will need to understand the different pros and cons of doing this.

credit card debt

A personal loan does have the ability to set you on the right path and aid you in getting rid of your credit card debt, but if you use the personal loan irresponsibly then you could find yourself in more problems.

Credit card debt is expensive and this is mainly due to the high interest rate that is charged. If you are behind on your credit card debt then you are probably dealing with a high interest rate. A personal loan could be a viable option for you.

What is a Personal Loan?

A personal loan is a financial product, which is usually unsecured, although you will be able to find secure options. A personal loan works in the same way that other loans do, but they can be used on anything and are often used for home improvements, medical bills, debt consolidation and more.

A personal loan is then a loan that can be used for unexpected personal expenses, which can include consolidating your credit card debt so that your repayment process is improved. As with any other loan, a personal loan comes with interest rates, repayment terms, late penalty fees and other such things.

The Pros of Using a Personal Loan for Credit Card Debt

There are a number of advantages of using a personal loan to pay off your credit card debt. These advantages include:

Lower Interest Rates

Generally, a personal loan will have a lower interest rate when compared to your credit card, which will then save you money on the interest. If you have good credit then you will find that you will have a good chance of getting a low interest rate on the personal loan. If this is the case and you qualify for an interest rate that is lower than what you are currently paying then a using a personal loan to pay off your credit card debt is a viable option.

Single Payment

If you are struggling with multiple credit cards with multiple debts, then you will be making multiple repayments each month with various interest rates. You can use a personal loan to consolidate these balances together so they are housed under one interest rate. You will then benefit from just having one repayment to make each month and manage, which will make things easier and budget planning becomes easier.

personal loan

Faster To Pay

When you choose to use a personal loan to pay off your credit card debt, then you might find that you are able to pay off your debt a lot quicker. This is because you will just have one payment to make and a lower interest rate. You may then find you can pay more than the minimum amount each month, so you can pay off the loan faster.

You might be wondering about the cons…

The Cons of Using a Personal Loan for Credit Card Debt

As with anything, there are a few disadvantages to using a personal loan, especially if you are not financially responsible or disciplined. Here are some of the disadvantages of taking a personal loan to pay off your credit card debt.

Potential for Higher Interest

Usually, the interest that you pay on a personal loan will be less than the interest that you pay on your credit card. However, if you have poor or bad credit then you may find that you have to pay more in interest as you have a lesser chance of qualifying for a low rate. No matter what your credit is, you will need to compare personal loan offers so that you can find a lender that offers a low interest rate to ensure that taking a personal loan for debt consolidation is worthwhile.

Same Spending Habits

If you have a high credit card balance because of bad spending habits then using a personal loan to pay off your credit card will not guarantee a difference if you do not change the way you use your credit cards. If you are not responsible and keep the spending habits, which put you in debt in the first place than a personal loan will just mask the problem and will create new debt if you continue to use your credit cards as well.

spending money

Slower Payoff

If you are able to pay more than the minimum monthly repayment each month, then you are able to pay off your personal loan relatively fast. However, if you consolidate multiple credit cards and only pay the minimum payment then it will take you longer to pay off your debt. A personal loan to consolidate credit card debt is still a debt and if you manage it poorly then you could just end up in the same boat.

If you are struggling with credit card debt then it is important that you pay it off, but you need to make smart decisions about how you will go about this. A personal loan can be a great option for some, but you will need to do your research and ensure it is the right decision for you and your finances.

If you are able to secure a lower interest rate on your debt then debt consolidation can be a good idea. Make sure that the financials line up in your favour and if they do then look for a favourable personal loan

10 Personal Loan Terms You Need to Know

Travelling through the world of finance can be difficult, especially when you don’t understand all the terms being used by lenders. It is then important for you to learn these personal loan terms so that you can simplify the process, understand it better and ensure that you are getting the loan you want.

loan

Here is a look at 10 personal loan terms you need to know.

The Annual Percentage Rate

The annual percentage rate or APR is the annual loan cost that is expressed as a yearly percentage. The APR will include any fees you pay, the interest rate and the insurance premiums paid to the lender.

Balloon Payment

At the end of your loan term, you will need to pay a lump sum, which is the balloon payment.

Collateral

This is a real and tangible asset that holds a value, that you guarantee the lender in exchange for the loan.

Default

This is what occurs when you fail to repay your loan according to your loan agreement.

Fixed Rate Loan and Adjustable Rate Loan

A fixed rate loan is where the interest rate that you pay is locked at a certain rate by the lender for the term of the loan. Adjustable rate loans are where the interest rate fluctuates according to the market throughout the term of your loan.

Lending Agreement

The lending agreement also called a loan contract is a legally binding document that states the terms of the loan between you and the lender.

Loan Term

This is the length of time that you are given to repay the loan. This term can be expressed in weeks, months or years.

Revolving Credit

This is a type of loan, where you are able to borrow and repay up to a specific limit, whilst the loan is active, like a credit card.

Secured Personal Loans

These type of loans will need you to provide collateral to the lender in order to secure the loan.

Unsecured Personal Loans

With this type of loan, the loan amount is secured with your signature and this is the only guarantee for the loan.

You need to know these basic terms so that when you are looking at personal loans, you understand more about what is being offered by the lender.

Why You Should Consider Online Loans

If you wanted to apply for a loan in the past, you would need to visit a financial institution, but nowadays you are able to apply for a loan from the comfort of your home with the aid of the internet.

online loans

You are able to apply for an online loan at any time of the day so no matter your situation, you are able to get the money you need when you need it.

Here are some great reasons as to why you should consider an online loan.

There are Many Options to Choose From

One of the biggest advantages of applying for a loan online is that you have a number of options to choose from. In the past, you would need to drive around to various banks and lending institutions, but now you have access to a number of lenders all in one place. As you have more options readily available to you, you have the freedom to find the best loan option for you.

When you are shopping for an online lender, you will need to do your research, know the amount of money you need and the interest rate that you are able to get. There are sites that will find you multiple loan offers from various institutions, which allows you to compare loan offers easily.

Many online lenders will offer quick approval, which means you can get the money you need in just a few hours.

Super Convenient

Online loans are super convenient, because you can apply whilst sitting on the couch in your PJs if you wanted to. Online loans are also super quick. The application process usually only takes a few minutes and you can receive your loan amount in a matter of hours.

The loan application process is simple and is conducted online making it easier. You just need to know how much you want to borrow and then factor in the repayment into your budget.

Instant Approval

The process of applying for a loan in person can be quite slow. At a bank, once you have submitted your application, you will need to wait for it to be processed and this time might be too long if you need the money immediately.

Online loan lenders offer instant approval because many online lenders will not conduct any credit checks or they will not run a thorough credit check.

Wait…There are even more great reasons below…

Approval is Not as Strict

Banks have quite a strict approval process for loans. In order to get a loan with a reasonable interest rate, you will need to have a high credit score, a solid credit history and your debt to income ratio needs to be low.

Online loan lenders are less strict, which makes them a great option for those that have low credit scores or no credit history.

loans approved

Keep Your Finances Private

Some people may find it embarrassing for them to need a loan and they don’t want their friends and family to know that they are in a financial situation. If you go to your local bank then you risk others finding out about your financial hardship.

With an online loan, you are able to keep all your financial matters private. Also, you won’t feel that anxiety or be worried that you might be rejected when you apply for an online loan from your home.

Lower Rates

Banks may offer higher rates and charge more fees than online lenders because they have more overheads to cover, which results in higher rates being offered to applicants.

Online lenders have very few overheads, which means they are able to offer borrowers lower rates and have fewer fees for you to pay. You will usually only need to pay the application fee and the interest rate.

You are also able to get an online loan with fixed rates, which means the repayment won’t fluctuate over the period of the loan. With a lower rate, more of your payment will go towards the principal amount instead of the interest.

Ensure You Have a Budget in Place

Keep in mind that when you accept a loan, you will need to pay the amount as well as the interest.

You should then apply for the lowest amount of money that you can, so that your repayments each month are lower.

Before you decide to apply for a loan, you should create a budget. You will need to determine your monthly expenses and income.

Having a budget in place will help you to determine if you are able to take on another expense. If you are not able to then you might default on the loan, which will damage your credit score and could lead to legal action against you.

Online loans are great, but make sure that you apply through a trusted lender. You need to pay attention to the approval process and the interest rate as well as any other fees charged. If you need money in a hurry then find a lender that has instant approval and same day money.

Online lenders make it easier for you to get the money that you need when you need it. You are able to apply 24 hours a day and receive your money the same day that you applied.

The Benefits of Paying Your Debt Off Early and How

So, you have debt, which isn’t great but on the flip side, you have a little extra money on hand. So, is it better to pay off your loans early or should you just keep on making the normal monthly payments?

paying off loans

You can only make the decision once you have evaluated what you get from the loan against the cost of keeping the loan around. You will be able to save quite a lot of money when you get rid of your loan debt early, but it might not always be the best thing to do.

Here is a look at the benefits of paying your debt early and how you can do this.

The Benefits of Paying Your Debt Early

Save Money by Paying Off Loans

One of the main reasons as to why you would want to pay off your debt early is so that you stop paying the interest, which will then allow you to save money.The interest that you are charged doesn’t actually buy you anything, but rather gives you the ability to pay slowly.

There are loans that can drag on for years and the interest on these can certainly add up. Other loans may have a shorter term, but these generally carry a higher interest rate, which then makes them more expensive. When it comes to high cost debt, you should definitely be paying more than the minimum.

So, when you pay your debt down early, you won’t be able to use that extra money, which could mean that you will not be able to enjoy those extra luxuries in the month or you will have a smaller financial cushion, which may make it harder to pay for any surprise expenses.

Also, you will have to come up with extra money to put towards other goals that you may have like your retirement or making a down payment on a home, for instance.

However, paying off loans early saves you money on the interest and you can stop paying a monthly repayment, which you can then use to save.

Give Your Finances Strength

You will become stronger financially when you pay down debt. The money that you have been putting towards the monthly repayment will become available and you can use this for other purposes and it can be used to fund your other goals.

You will also become a more viable option for lenders. Lenders have to be sure that you have enough money to repay loans and that any loans that you have aren’t eating up too much of monthly income, which is known as your debt to income ratio. Your debt to income ratio improves when you pay off debt and this will help you to secure a loan in the future.

Also, when you pay down debt, your credit score can also improve. Part of your credit score is based on the amount that you are borrowing in relation to the maximum that you potentially could borrow. If you have maxed out then you will have a low credit score, but when you pay down debt that you have, you will create more wiggle room.

Just Relax

There are some that just hate debt, so they pay off loans as soon as possible, which is fine as long as you know what you are doing.

You might be looking for peace of mind so that you don’t have to worry about debt. Your goal might be to eliminate any debt that you have before you retire or you might just be sick of paying monthly payments.

personal loans

When you are looking at paying off debt, you need to look at the big picture and make a decision that you are able to live with and makes the most financial sense.

So, how can you pay off your debt early?

How to Pay Off Debt Early

In many cases paying off debt earlier just involves sending extra money, whether you pay a little extra each month or you just do it all at once. You can ask your lender how you can do it so that your payments are correctly credited to your account and so that you know exactly the amount you need to send.

Here are some tips on how to pay off debt early.

Just Send Money

The easiest way to pay off your debt early is to pay a little or even a lot extra when you are able to. This is also the hardest strategy to implement as you will need to have discipline to do this.

However, if you are confident in your ability to send extra payments and pay off your debts then just send extra payments.

When you send these extra payments, you should include a note that says ‘apply to principal’ so that your lender doesn’t get confused and they see that you are trying to pay extra. If they need things to be done differently they will contact you.

Just the One Extra Payment

You will be able to pay off debts quicker when you add an extra monthly payment each year. You can pay the extra monthly payment anytime during the year as a lump sum, but if you are like most people and you find it hard to come up with the extra payment, you can spread this extra payment throughout the year.

pay off debt

You can divide the monthly payment by 12 and add that amount to each of your monthly payments. This will help you to pay your debt off earlier.

Try Biweekly Payments

Instead of paying every month, you can look at paying every two weeks, which will be the same as one extra payment per year. When you go for the biweekly option, you will see a huge change in your monthly expenses, but you will also save huge as you pay off your debt over the years.

Help from Your Lender

You should speak to your lender as they may have options available that will help you to pay off your debt more quickly. However, be careful as these programs may have additional fees attached. You need to see if these programs are worth it to you and if they are, then pay the fees.

If you don’t want to pay extra fees, then you can find a way to pay extra and avoid the fees like automatic monthly payments that you can set up through your banks’ online banking portal. Just make sure that you attach a note that says ‘apply to principal’.

When you are paying off your debt, you will need to exercise discipline so that you can get it done. It can be tough to pay extra on your monthly payments but in the long run, you can save money. Make sure that you will be saving more than what it is costing you. You need to make an informed decision about paying off your debt off early but paying off loans early can be a huge financial relief.

Money Milestones You Should Hit Before Having Kids

Having and raising children is one of those joys in life but raising children does come with quite a large price tag. Usually, we hear that buying a home is the largest expense that we will take on but raising a couple of children can actually exceed that for many people, especially when you factor in the price of education.

money milestones

However, like most financial decisions, you might want to get everything in order before you decide to have children. Here is a look at money milestones that you should hit before you have kids.

Have a Stable Career

It is vital that you have a secure work situation before you have children. This could be traditional employment, self-employment or a combination of both. You will want to have an established foundation that will be able to support your growing family.

You need to think about the career paths that you can continue on once you have a child and careers that offer a salary that is adequate to cover the expenses of a child as well as your other expenses.

The salary from a job is important, but also look at other benefits like healthcare, maternity/paternity leave, the sick leave or personal leave policy and other such things. After all, you don’t want to have to take a day off to care for a sick child and then find out that you don’t get paid for that day.

Your Disposable Income

The fact is raising just one child is expensive, so you will need to do some calculations so that you can get a better idea of how much a child would cost each year. You can use online calculators to do this. This will determine if you have enough room in your budget to have a child before all the expenses start rolling in.

Making these calculations will give you an idea of how much your disposable income will need to be allocated to raising a child. You can even plan in advance and save up a year or more of these estimated costs so that you are ready to have a child and be able to afford it.

Wait…Here are some more financial milestones…

Create an Emergency Fund

Parenting is an adventure and you can never know what may happen, but it pays to be prepared financially for any unexpected event. Having an emergency fund in place is a true necessity when you have children.

Your emergency fund should be at least three to six months of expenses so that when life’s messes arise like a broken leg or your teens first fender bender, you and your family are protected.

Save for Retirement Before

As children get older, the expenses for them also increases. You should then make sure that you are able to save for retirement before you have a child. Saving for your retirement is solely your responsibility, so being able to contribute to your retirement fund before you have kids helps to secure your future and relieves your children from the financial burden of having to care of you when you are older.

save money

Make Sure You Can Save for Education

Education and especially university is expensive and the cost continues to rise. Many students have to take on a student loan, but these are pricey and can see your child being in debt for years to come.

You are able to relieve the financial burden of education for you and your future children by saving. You need to ensure that you are in a position to save for your kids’ education from the moment they are born or even before so at least by the time they are ready for university, you will be able to pay for it.

If you are not able to save the full amount then you can part pay and perhaps take a personal loan for the rest, that you are able to afford to pay each month. The interest rates on personal loans are lower than other loan types and are flexible in terms of the repayment periods.

Don’t panic if you can’t hit these milestones…

These milestones are of course the best-case scenario, but just because you are not able to hit all of these it doesn’t mean you shouldn’t have children or that you will face financial ruin if you do.

It is best to have a financial plan in place before you have kids, but there are a number of financial products that can help you on your journey when you are raising children. You can consider getting a personal loan for educational purposes provided that you can repay the payments or you can use a loan to pay for an unexpected emergency and pay it back over a few months and so on.

After all, sometimes the best laid plans don’t go the way you want them to and you might not be able to plan right down to the second of when you will have kids. Just be aware of the costs involved and see what you are able to achieve and discover ways that you can reduce your financial worries.

Getting an Online Loan

Online banking has been around for years, but nowadays you are also able to find a number of good online lenders to choose from. Online loans are changing the way that we borrow money as you no longer need to fill out the same old forms with your bank.

online personal loan

So, how do you get a loan online and what is the process.

The Benefits of Borrowing Online

Online lenders aim to make borrowing a lot easier and there are a number of benefits when you choose to borrow money through an online lender.

Quick Approval

Online lenders have the ability to pretty much almost tell you immediately whether you have been approved or not.

Traditional banks are different, even if you are able to fill out an online application, you may need to wait a while to find out if you have been approved as someone will need to review the application and then you may still have to visit the branch in person.

Online loans takes this away as the whole process is conducted online and you are able to submit any supporting documents through their system, which makes the approval process a lot quicker.

Better Rates

You should always shop around for a loan and you will find that online lenders will usually charge less than anywhere else. With online lenders, you will usually find lower interest rates and smaller service fees. This is because online only lenders do not carry the same overheads that banks carry with physical branches.

Easier Approval

It is a lot easier to get a loan when you have good credit, but if you are still building credit or if you are suffering with bad credit, then you might find joy with an online lender. You may find that online lenders are more willing to approve you even if you have a lower credit score as they will rather assess your ability to pay the loan back and use information like your income and utility payments, for instance

This then means that approval can be granted to those with low or even bad credit.

Unsecured Loans

The majority of online loans are unsecured, which means you are not required to pledge collateral in order to get approved. If you fail to repay an unsecured loan, then your credit score will drop, but you don’t risk any assets being repossessed.

Wait…You still need to know how you can get an online personal loan…

How to Borrow Online

Getting an online loan is not that much different to the traditional way of getting a loan, but the whole process feels a lot easier and you don’t have to leave your home in order to apply.

With online borrowing, you will need to provide personal information like your ID number and address as well as financial information like your income.

All you need to do is find a reputable online lender and then start the application. These applications can take between 5 and 15 minutes and once you have been approved, you can receive your loan in a matter of hours in some cases.

What About Payday Loans?

When you are looking for online loans, you will get plenty of hits for loans that are payday loans. Payday loans are short term loans that carry a high interest rate. These type of loans can work for you, but they can also work against you.

payday loans

The idea of a payday loan is to help customers that are in a financial bind and need money quick. The loan is then repaid once you receive your next pay check, which can cause problems for that month. If you do decide to take a payday loan then you need to make sure that you can afford it.

Payday Loans can be recognised in a number of ways.

Firstly the term for the loan is very short in that you have a month to pay the loan back. Rather find a loan where you have months to pay off the debt.

Secondly, the interest rate on payday loans is high. You will need to shop around for the best interest rates and find one that suits you.

Thirdly, payday loans will advertise that they don’t check your credit, but the fact is that you will need to have decent credit to get a decent loan.

Lastly, online lenders that ask for up-front payments should be avoided. Legitimate lenders may charge fees, but these fees will generally come from your loan proceeds.

Payday loans do have a purpose and can help in times of an emergency, but they should be treated with caution.

If you are looking for a loan then you will need to shop around and the great thing about online lenders is that you have the ability to compare loan offers easily. Online personal loans are a great option and the application and approval is easier and quicker, which means you will be able to get the money you need quickly.

Should You Get a Loan for Your Wedding

A wedding is a day of celebration and everybody wants their wedding to be memorable and to mark the beginning of you and your partner’s life together. You will want to have a beautiful setting and some great food to help set the mood and share it with friends and family.

Wedding Loan

However, weddings are expensive and you may not have the money to throw into such a day, but does that mean you should get a loan to pay for your wedding?

Many people do borrow money for weddings, but it does carry risks. So, let’s look at what it means to get a loan for your wedding.

Should You Get a Wedding Loan?

If you decide to take a loan to pay for your wedding then it means that you will go into debt and you will then start your married life in debt, which could cause problems down the road. You want to then get off on the right foot and not have the financial stress that comes with borrowing money.

Ideally, you want to start by building a future with your spouse, for instance, you could save for a home or save to have a child in the near future, start a retirement fund and so on. Those monthly payments that you are paying towards a loan could be used to build your savings.

If You Decide to Borrow

If you do decide to get a loan for your wedding then you need to borrow wisely. The majority of loans, even if they are marketed as wedding loans are just personal loans. This means you will not need to pledge collateral against the loan and your income and credit score will influence whether you will get the loan.

You will then need to check your credit before you apply for a loan to make sure there are no errors or negative marks.

If you have bad credit or not enough income to qualify for a loan then you and your spouse could co-sign for a loan. This means that you both equally share the responsibility for the loan and its repayment. This would make you equal partners with an equal responsibility, but if something goes wrong then you will both end up with bad credit.

personal loan

If you want to get the best terms then you need to look for a loan that has these characteristics.

Firstly, you need to get an unsecured loan so that you do not need to put up any collateral, which means you won’t lose your car or home if you fail to repay.

Secondly, it is a good idea to get a short term loan as the term is shorter, you will pay less in interest over the life of the loan. You are then able to get the loan done and dusted with sooner.

Lastly, with a fixed interest rate loan, you will know what you will have to repay each month, which then makes it easier to budget for the loan repayment.

Where You Can Borrow

If you want to get the best rates then a personal loan from a bank or an online lender are the best places to look.

You can also consider a peer to peer lender as they generally offer short term loans with competitive rates. However, if you don’t think you can pay this loan off in a few years then another option might be best.

Credit cards are a risky option to fund your wedding. Credit cards are easy to use but they can easily get out of control. If you have good credit and a plan in place to pay off your loan in 6 months to a year then you could opt for a 0% interest credit card, where you won’t pay interest for a certain period of time, but if you fail to repay the balance within in this time then you will start paying a high interest and may get in over your head.

Wait…You might want to explore some other options…

Alternatives to a Loan

Here are some alternatives to a loan that you could consider to pay for your wedding. If you don’t have the funds to pay for your dream wedding then something will have to give.

Budget and Save

Unless you are getting married in the next month then you will have some time to plan and start putting some money aside to pay.

You should pay for what you can yourself and save. This will develop a good habit for you and your spouse in the years to come.

Family and Friends

There are some people that might feel embarrassed to ask family and friends to help pay for their wedding, but if you are not one of these people then think of creative ways to get help. The simplest way would be to ask for money and crowdfund the wedding.

Another way though would be to ask family and friends to offer their time, skills and other resources. You might know someone that has a beautiful property, for instance, that you could use for your big day, or maybe someone is a chef or you have a great photographer friend. There is no shame in asking for help and your friends and family will be more than willing to help.

Defer Costs

You could hold off on buying an expensive ring and rather start with something that you are able to afford right now and then upgrade later in life like on an anniversary.

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Make Cut Backs

You may have to make difficult decisions about your wedding day. You may consider inviting fewer people or make the event more modest. You could have a cash bar instead of an open bar and so on. Your guests will remember the feeling of your wedding and you being happy not the specifics.

You can take a personal loan to help pay for your wedding, but you and your spouse need to know the ins and outs and make sure that you will be able to pay it off once you are married and not let it lead you down a road where you will drown in debt.

Signs You Need to Get a Personal Loan

Personal loans are more expensive than secured loans, but this is because you do not need to put any collateral up in order to get a personal loan. When a personal loan is used sensibly it can completely change things in times of need. A personal loan can ease sudden expenditures like high medical bills, moving costs, credit card balances that have got out of hand or expenditures that are more than what you budgeted for.

personal loan

Financial burdens can be eased through the use of a personal loan when they are borrowed and repaid on time. Take a look at these common uses for a personal loan and see if getting a personal loan is right for you.

Medical and Dental Bills

Health insurance is great to have, but it may not cover everything, which means that some medical bills can start to eat your savings. There are some insurance covers that won’t cover elective surgeries or aftercare, which means you will be stuck with these bills. You are able to use a personal to cover any missed payments for medical or dental bills that you currently have before these defaults start to affect your credit.

Consolidating Your Existing Debt

Credit card debt, small loans and other types of debt can quickly get out of hand. You will need to manage the monthly payments on each debt plus pay different interest rates and you may not be able to keep up with all these payments. A personal loan can be used to consolidate all these debts under one fixed rate loan with a closed end term. This will mean that you will only need to manage a single debt repayment each month with a single interest rate.

Lose High Interest Credit Cards

If you are struggling with a high interest credit card debt then a personal; loan could be your solution. An unsecured loan is more expensive than a home equity loan, but the interest rates will be lower than what you are paying on your credit card. You can use a personal loan to settle the amounts on your high interest credit cards and get rid of these.

Paying for Home Improvements

You can use a home equity loan for remodelling your home or making improvements as this will cost less than a personal loan, but if you don’t have a lot of home equity and you need to make repairs or upgrades then you can get a personal loan. There are some home repairs that can’t wait and if you are remodelling your home or making improvements then you should make ones that offer the greatest return on investment in terms of home value.

Wait…There are more common uses for a personal loan below…

Improving Your Credit Score

If you have consolidated your debts with a personal loan, then you can improve your credit score as long as you have paid the personal loan on time for at least 6 months. If your personal loan pays off existing debt, then ensure that the information about your account has been correctly reported to the credit bureaus. This means making sure that your old debts have been marked as paid.

Paying for a Wedding

Weddings are expensive even if you have a small wedding. Wedding costs include the dress, food, venue, flowers, music and more. You are able to pay for your wedding or just part of it with a personal loan, which will avoid you draining your bank account and your savings account.

Holiday Time

Whether it’s a honeymoon or a trip of a lifetime it can be expensive, but a personal loan is often used to pay for these types of trips. Travel is expensive, but if it’s a once in a lifetime trip and you will be able to pay the loan back then it could be your key to travel to your dream destination.

get a personal loan

Financing a Car

A popular way to finance a vehicle like an RV, car or bike is to use a secured loan, but if you do not have a credit history or don’t have any equity then you can use a personal loan to fund your vehicle. This could be your first loan and can be a great way to start building a credit history.

Paying for a Move

If you are facing a sudden career transfer or a new job in a different city then your savings can take a hit. You can fund an unexpected move like packing boxes, moving vans, a down payment on a new home and other such things with a personal loan.

Pay for a Funeral

This is something that many of us do not like to think about, but funerals can be expensive. A funeral includes a casket, burial or cremation costs, funeral home fees, food, flowers, transport and more. There are many people that buy insurance in order to cover these costs, but a personal loan can help to cover any shortfalls or if you do not have cover to pay for the full funeral costs.

Personal loans can completely change your situation and allow you to pay for things that you were struggling or unable to pay for before. You should keep in mind that a personal loan is only beneficial when you are able to repay the monthly amount on time.

How to Get a Personal Loan for Christmas

The holidays are in full swing and Christmas is just around the corner and you might be stressing about if you can afford it. There are gifts to buy, decorations, Christmas parties and the kids are on their festive break.

It is not the best idea to get a personal loan to cover these expenses, but if it’s your only option then you will need to know how to get the best terms for your loan.

Getting the Best Personal Loan for Christmas

When you are looking for a personal loan for anything, including Christmas then you need to make sure that you get the lowest interest rate possible. Your credit score will influence this, so you will need to know your score.

If you have a low credit score then you will pay higher interest rates. You can use a reputable credit reporting company to find out where you stand with your credit score.

Apart from the interest rate, you also need to take into account fees that the loan provider will charge. There is usually an origination fee and it’s generally a percentage of the total amount that you are borrowing. This fee could be deducted from your loan proceeds.

If your credit score is not that great, then you are able to find loans for people with bad credit. These loans are short term loans and may carry a high interest rate. You are able to compare offers though and choose the one that is the best option for you.

If you want to boost your credit score then you need to make sure that you pay every bill on time, pay off your debt and ensure that there are no errors on your credit report.

Also, make sure you don’t apply for any more credit around this time as every time you apply for credit, your credit score actually drops a few points.

You might be wondering how you can limit your debt over Christmas…

Limit Your Debt During the Holidays

There are a few ways in which you can limit your debt over the holiday season.

What are the Options

If you are going into debt over the holiday season then you should do this without paying a lot of interest. You can ask a family member for a small loan, for instance, just make sure you do not ruin your relationship with that person because of money, but this can help you to save money.

Another alternative if you have good credit is to apply for a credit card that has 0% APR promotion. You will be given a certain amount of time with these credit cards where you will not need to pay any interest on your purchases.

When you are shopping for a short-term cash loan, make sure you compare offers from lenders so that you are able to get the best deal and limit your debt.

Have a Budget

You will need to establish a budget for how you will use the loan funds. You should compile a list of everything that you expect to spend.

This will help you in not borrowing more than you need and it will make sure that you only spend what you have budgeted for.

Also, just because you have borrowed a certain amount, it doesn’t mean that you have to spend it all. If you find something that is under your budgeted amount then you don’t have to spend the rest.

Give the Gift of Time

You don’t have to spend money on a gift, instead, you can offer your time. You can babysit, for instance, for a family member or you can help elderly relatives with something they need doing. You will need to put some thought into what you can offer, but as you are not spending money, you will not need to worry about debt.

Plan in Advance

This may not help this year, but you can already start planning for next year. You should evaluate how much you spend at Christmas and save this amount throughout the year.

Another option to plan for next year is to actually shop for Christmas gifts throughout the year. You can create a gift list for next year and keep a copy in your purse or wallet, then when you see the right gift at a good price, you can get it and cross it off and not buy anything else for that person.

Borrowing money for Christmas is not the ideal situation, but sometimes it’s necessary. You just need to make sure that the loan is affordable and you will be able to repay it.

You should definitely use a loan comparison site so that you can find the best deal and also limit the amount that you have to borrow. Also, start getting ready for next year by saving each month or by buying gifts throughout the year.

A short-term cash loan can help this festive season, but avoid borrowing more than you can afford and make sure you can pay the loan back and on time.