Unless you’re up to living dangerously and getting unpleasant surprises, knowledge is something mandatory before taking out a loan. Whether we’re talking about payday loans, installment loans or personal loans, the same rule applies. It could save you from a lot of trouble, as you can avoid taking out a loan if the risks are too high.

That being said, if you were eager to learn more about personal loans, you’ve come to the right place. We collected some information in order to tell you what you should know regarding personal loans. Without further ado, let’s get to it!

1. They Come in Two Types

Personal loans can be secured or unsecured. The secured ones are backed by collateral, like an asset or a savings account. If you’re not able to repay it, then the lender has the right to claim your asset as payment for the loan.

Concurrently, unsecured loans are not backed by collateral, and the lender decides if you qualify based on the financial history. In case you don’t qualify, or you seek a lower interest rate, some lenders can also give you the secured loan option.

2. They Can Save You from the Debt Void

One way many people use personal loans is for debt consolidation. You may get a lower interest rate, and you also have an organizational advantage of only having one bill to pay monthly. Basically, it gathers all the bills into one, so you don’t have to stress with multiple payments.

3. Banks Are Not the Only Way to Go

You can indeed obtain a personal loan from a bank, and that’s probably the first place coming to your mind regardless. However, the bank is not the only place where personal loans are offered, as there are other ways to obtain one.

For instance, online lenders, consumer finance companies, credit unions, and peer-to-peer lenders can also offer you a personal loan.

4. It Can Impact Your Credit Score

During the application process, the lender will pull your credit as a part of the application process. Consequently, your credit score will slightly decrease. Whether it will increase afterward or not depends on you and how you pay off the loan.

5. Personal Loans Are Not Long-Term Solutions

Although a mortgage is paid off over decades, personal loans are another story. They are usually paid off in seven years or less. In a way, this could be a good thing, because you won’t get to borrow money for longer than you need. Conversely, it also means that if you are trying to borrow a huge amount of money, the payments may be too high for you to keep up with if you take this type of loan.

Knowledge is power and having the proper information upon applying for a personal loan can be a life-saver. Not only that you’ll know the multiple ways in which it can help you, but you will also be aware of the disadvantages and you can avoid them.

Why is it important to teach our children to budget?

It will be a necessity as a child grows to understand the difference between a NEED and a WANT.

A need is something we cannot live without.

A need is food and clothing.

A want is something we can live without.

A want is things that we perhaps do to relax such as spending money on websites such as 888sportsusa.

It is ok for a child to understanding that it is ok to buy things that are a want but that needs must have priority in spending.

Children are not born with an understand of what we need vs want or what a budget is.

We have to take to teach them properly about money.

Play money games at an early age.

There are many toy store sets with play money or small denomination of change work just as well.

If you chose to use real money in teaching your children have them save it in a safe place between play to understand that it is something special and worth not losing.

A piggy bank or ornamental box is a good place for any change.

Buying and selling toys or cookies for play helps the child establish a stronghold on the understanding of what we have to use money for in everyday life.

Have the child do chores or help older ones to establish a bank of there own money for things that they want to spend money on.

Some parents will give the allocated money for toys to the child and allow them to spend it either all in one sitting or in multiple times through a set time frame.

By not adding to the child’s money for there toys the child will learn what the family had budgeted towards their toys.

A trick my mother started at an early age was giving each of us a part of the shopping list and then showing us the proper way to tackle it.

Needs first.

Only after those needs are met can the wants be thought of.

She showed us how to look at sales, the cost per oz of an item, and name brand vs off brand.

The height of an item or location such as an endcap can have a large bearing on the cost of an item.

Teaching your children to budget will help them to look at you with more respect when you say that something is not a priority, despite how much they “want” it.

 

Buying a car is a very subjective experience. Some love nothing more than to wander the aisles of a car lot, evaluating potential options. Others, on the other hand, are brought to the lot kicking and screaming. Some who desperately need a new car will put it off for as long as possible simply because they are uncomfortable with the whole process, from picking out the best car, to negotiating an ideal price, to solving a financing solution. Wherever you land on this spectrum, there are red flags to look for when buying a car. As long as you’re aware of these warning signs, you’ll be fine. Don’t know what to be out on the lookout for? Read on for these top six read flags.

1. What’s That Funky Smell?

Chances are, you’ve at one point spilled something in your car that left behind a bad smell. Hopefully it was only temporary. If you’re buying a used car, you’ve probably accepted the fact that finding a car with that highly coveted new car smell is out of the question. However, a car with “funk in the trunk” is something experts will always tell you to avoid. As this article from HowStuffWorks.com notes, “Avoid used cars with musty, moldy or mildew-y interiors as this is a sign of possible flood damage. When a car suffers flood damage, most insurance companies consider it a total loss because the water damages almost every system, from mechanical to electrical to even—you smelled it—the carpet.” Of course, the smell itself could be a deterrent enough, but the reasoning behind is much more ominous.

2. Mismatched Paint

All used cars have a history and, unfortunately, accidents are often a part of this record. But it’s how the former owner handled the accident that matters. If he or she tried to save money by going to an unauthorized or disreputable company to fix it, the signs could very well be paint that isn’t matching on various parts of the car. Not only is this unsightly but it’s an indication that the former owner likely didn’t take very good care of this vehicle. In FSBO transactions, always ask for supporting maintenance documentation from reputable service centers like Midas.

3. Sketchy Sellers

If you’re looking at a car that’s for sale by owner (FSBO) but this particular person is ultra-controlling about how far you can take the car for a test drive or what you can touch, be very wary. And if he or she rides along with you but doesn’t want you to test things like air conditioning or other features, run—don’t walk—in the other direction. You’re often better off using a reputable company like Autonation that certifies their pre-owned vehicles to be in like-new condition. Looking for a new car instead? Check out this Audi dealership. Autonation has Audi dealerships from Arizona to Wyoming, so you can count on a safe seller no matter where you live.

4. An Unrealistically Low Price

The Kelley Blue Book is there for a reason, as it gives you an idea of how much a used car you’re looking at should be worth. Of course, a car that’s priced sky high for its mileage and current condition is not a good sign, but a car that’s priced incredibly low should also be considered a red flag. The person is obviously trying to unload it quickly, so there is probably something under the hood that isn’t quite right. Be skeptical and consider just skipping this one altogether—especially if the title is missing.

5. A Change in Online Price

If a seller or car dealership decides to start from scratch with pricing when you come in showing them your online quote, this is a huge red flag. Trust us, this will happen a lot. Our advice is walk away immediately. You might be able to eventually get them to stick to the online quote but it will be an exhausting experience. As USA Today’s Adam Shell noted of his experience, “The new price was higher than the initial online quote. But instead of making a beeline for the door (which might have immediately given me fresh leverage in the negotiations), I opted to fight it out, steeling myself for what turned out to be a time-consuming, mind-numbing and emotionally draining encounter.” What they might use against the online quote is fine print, which is even sketchier when all is said and done.

6. You’re Bounced Around

We get that you might have to deal with the sales person and the finance person when buying a car, but if you’re bounced around to four or five different people throughout the process, chances are you’re going to end up with a bad deal. The reason being is that part of each of their jobs is to get a bit more money out of you, so if there are a lot of people working with you, well… you do the math.

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Buying a car doesn’t have to be an exhausting and frustrating experience. Watch out for these red flags. If you manage to avoid them, you’ll do great.

By Loans Canada

 

You want to take out a loan, but you’re not sure which one. If that’s the case, you are reading the right article. In this article we’ll look at factors to consider when choosing the right loan.

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