Tag Archives: simply

Are you ready to be a homeowner?

June 28, 2020   Loan Tips

There is certainly no doubt that everybody wants to own a home. To not have to pay rent, to have some equity, and, hopefully, to have something that actually builds value over time, perhaps providing you with a sufficient fund for when you reach retirement. Perhaps most importantly, however, is that it is a home that you own.

Home ownership is a dream for most people, there is no doubt about that. Today, that dream is more accessible to more people than it has typically been in the past. However, not everybody is ready to own a home.

There are a lot of things to consider before taking that first step towards home ownership. Buying a home can be a great experience, but it is always a large responsibility, so you really need to stop and consider whether or not it’s a responsibility that you’re willing to take on right now.

In an effort to help you reach that decision carefully, we’ll provide you with a simple checklist for the potential new home owner. Consider these to be some basic questions to ask yourself:

1. Am I ready and able to settle down?

“Settling down” might not mean “permanently”. It’s certainly possible to buy a home, sell it, and move within a few years time. However, you need to consider whether or not your lifestyle really accommodates home ownership. Do you spend most of the year travelling for work? If so, buying a home might not be top priority. Rather, it may be wiser to start saving and investing so that you can afford a home when you’re ready.

2. Do I want the added responsibility of paying off a mortgage?

To be perfectly frank, it is possible to arrange a mortgage deal that will have you paying less per month than many people pay simply to rent an apartment. However, the consequences for failing to make mortgage payments on a timely, regular basis can be more severe than the consequences for being late making rent on an apartment. Simply put, a home owner’s credit is on the line.

3. Can I afford a home?

The recession and the housing crisis have been difficult on everyone. If you are one of the many struggling to make ends meet, then we refer to point two: Taking out a mortgage will only compound your problems, not solve them.

We don’t mean to scare anyone away from pursuing the dream of buying their first home, we simply want to make clear the weight of the responsibilities home ownership carries.

All of this considered, if you are in fact ready to become a home owner, then by all means, do a little research and find a home loan deal that will work for you. Just bear in mind that the key word there is ‘research’. Once you’ve decided to become a home owner, you still have a number of decisions lying ahead of you, so make sure to educate yourself and make the choices that will help you achieve your goals.

Read More

Payday Loans Work for the Responsible Borrower

June 1, 2020   Auto Loans

Payday loans have gotten a bad reputation over the years, but not because they do not have value, but rather because many people who utilize them do not utilize them responsibly. The fact is payday loans are not for everyone as they are meant to serve short term needs only. Payday loans should not be considered as an option to fix a long term problem or paying back the loan when payday arrives assuming that you are out of money.

Using Payday Loans Wisely

One often tends to think about why people who use payday loans complain about them and the ‘trap’ they are in. The fact of the matter is that payday loans are for short term use, which means a week to two weeks. This kind of loan serves those that are between pay periods and need some extra cash to pay for medical bills, car repairs, house repairs, and that sort of thing.

The problem that many people have with payday loans is their interest rate. These loans do have a very high interest rate, in fact the federal government has thought about stepping in and putting a limit on how high the interest should be allowed to go. You can pay extraordinary amounts of money in interest. When you are only borrowing for a short time, say a week, and you are really in a mess and you need the cash urgently, the interest isn’t all that bad.

For instance, if you need to borrow $300 until pay day you may actually need to pay back $375 or more when you get paid. This seems like a lot, but sometimes when you really need that money now, the $75 that you pay in interest is worth the convenience of being able to take care of whatever pressing issues that you are dealing with.

Now, if you are simply getting behind on money and you take out the $300 or more and you simply carry the loan amount over from week to week, you are throwing money away! My experience suggests that if you are paying this interest amount every week or two weeks and you aren’t paying off the loan and you aren’t getting ahead, it simply doesn’t make sense to take out the payday loan.

When you think about it, payday loans best suits those people who are responsible with their money and have the requirement to procure some extra money in their hands before payday. The whole idea is that you give the payday company a check for the amount of money that you need in addition to interest. They give you that amount of money in cash and when you get paid they deposit the check and the whole loan is closed out and you are done.

It is very comfortable for people to continue to carry the loan from week to week. This might be fine once or twice, but if you keep doing it you’ll just dig yourself in deeper and deeper. Many people find that they are never able to pay the full amount of the loan back. Payday loans should only be considered as a last resort and when the borrower is in a true pinch.

Read More
« Older posts