Finance Is An Education

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Finance Is An Education

finance

Finance is a very broad term

Finance that is very often surfed, or searched for, online and when I ran a search for the word “finance” using a well renowned keyword search tool the figure of 1,830,000 exact searches per month was shown.

Then when I ran a search using Google’s search engine the serps, (search engine research pages),  returned a figure of 1,270,000,000.

In the corporate world there are experts that take care of the financial side of things, otherwise known as financial advisor, financial planner or even certified financial planner, there are more than enough names and titles to go around but I digress, and by making sensible investments they ensure businesses and corporations stay afloat because they make the most profit possible, while keeping their shareholders happy and in profit.

Of course there are many aspects of finance that makes the world turn and it can be a very complex topic for a lot of us.

However, we are going to discuss various areas of some financial services that affect many of us and the way we live our lives.

The finance industry involves several economic services that cover a very wide range of various businesses and areas which we all are involved in at some part of our lives.

Some of these businesses which we could be involved with, in one way or another, are, but not limited to, the following:

  • banks
  • credit-card companies
  • insurance companies
  • credit unions
  • investment funds
  • alternative financial services https://en.wikipedia.org/wiki/Alternative_financial_services

 

People have different reasons for why they search online for well sought after search terms but in the world of finance, most people tend to look for some kind of loan, and at the same time they are either just curious, or they wish to know what their monthly commitments will be per month, should they acquire a loan and to discover this information they look for what is commonly known as a loan calculator.

Thanks to technology, we have the ability to empower ourselves with more knowledge today than ever before, and things that used to take days or even weeks, just a few years ago, can now be completed in the blink of an eye.

There are many kinds of calculators online today that help make things easier for us, and not all are related to the financial world.

But of the ones that are, here is a list of what they are called:

  • Mortgage calculator
  • Loan calculator
  • Auto Loan calculator
  • Interest calculator
  • Real Estate calculator
  • Take-Home-Paycheck calculator
  • Payment calculator
  • Retirement calculator
  • Amortization calculator
  • Investment calculator
  • Currency calculator
  • Compound Interest calculator
  • Inflation calculator
  • Lease calculator
  • Finance calculator
  • Mortgage Payoff calculator
  • Refinance calculator
  • Budget calculator
  • Income Tax calculator

Basically, an online loan calculator is an automated tool that enables the user to clarify the results of a numerical scenario, or example, after certain variables have been entered into the online calculator.

In the case of an online loan repayment calculator, one is able to see the changes in any financial loan scenario as and when one, or even several variables are changed and a new end result is given.

That is to say, when a person wishes to see what his potential repayments for a mortgage would be, before even applying for a loan, or perhaps a mortgage, he would enter certain criteria into the loan calculator.

These criteria are more commonly known as variables and these consist of such things as total payments per annum, compound interest rate, the loan amount and the loan balance, and other things such as the regular payment amount, etc.

In essence, a would-be borrower can use a loan calculator to get a pretty good idea of what kind of property he could afford, based on his current income and his existing debts.

Fed with all the necessary information, an online loan calculator can determine the total amount of all income  amounts and correlate these against a person’s monthly deficit liabilities.

A good thing about using an online loan calculator is the fact that there is no negativity set against one’s credit score and these can be used to carry out preliminary searches for loans, such as:

  • payday loans 550,000
  • student loans   246,000
  • car loan     74,000
  • short term loans 60,500
  • quick loans     49,500
  • installment loans 49,500
  • small business loans 49,500
  • cash advance     90,500

The complete list is a long one, but the principals of any loan calculator is basically the same.

Furthermore, they can also forecast things like property tax, home-ownership expenses, or dues, and mortgage repayment amounts.

There are costs that a standard online mortgage calculator does not take account for and these include the following:

  • service fees
  • property management expenses
  • maintenance fees
  • insurances of various kinds
  • refurbishment

In basic terms, varying loan amounts can be tried and tested and sized up against loan amounts and rates of interest.

No matter what size of loans are calculated and tested by a user it has to be said that most money lenders prefer not to deal with people whose debts amount to more than 40% of their gross monthly income, although some do allow a 55% ceiling as an absolute maximum.

For each and every online calculator there is, there are different variables that apply.

 

Payday Loans

Due to circumstances beyond the control of a lot people, it is a sad but real  fact of life, that far too many families and individuals are suffering financially trying to make ends meet.

Far too often ordinary people discover that their income is not enough to sustain them the way it once did and this could be for one, or many, different reasons.

True to human nature, where ever there is a need there will often be something, or someone, to provide that certain need – at a price.

The fact of the matter is that in order to cope with debt, or perhaps a fear of not being able to meet their immediate financial commitments, people turn to an industry within the world of finance that is known as payday loans.

Payday loans are basically high interest, limited and short term loans offered by money lenders, or money lending companies that are also known as check cashers.

For the record this type of loan falls within the same group as:

  • cash advance loans
  • deferred deposit loans
  • post dated check loans
  • check advance loans

The payday loan grew out of a need of people who felt that they “needed a cash advance to help them get by until their next pay day arrived”

These cash loans are such a good business for money lenders that people are now inundated with adverts sent by ordinary mail and delivered online by e-mail and websites alike, including radio and television. They are simply everywhere, and with good reason. They are very profitable for the money lenders.

The basic principles of a payday loan, or whatever you wish to call it, work like this:

Persons wishing to borrow money this way sign a check that is drawn in favor of the lender for the sum of the loan in question, that includes the price, or fee, charged for the money borrowed.

The required loan, minus the incurred expense, is given to the now debtor, or it is deposited into his bank account.

The borrowed amount is generally expected to be repaid on the next pay day.

The interest rates for these type of quick loans are extortionate and they can be a “means to an end” but they can also get out of control very quickly if the terms of any payday loan are not strictly adhered to.


Credit Cards for Bad Credit

A lot of people get themselves registered as bad payers and naturally they end up with a bad credit score.

An amazingly high percentage of people first discover what credit score is when they apply to their bank to get a credit card.

This is a hard lesson to learn, when starting off on the wrong foot as it were, because credit cards, when used wisely, can be a great asset to have.

But once again, where there is a need, there is profit to be made and banks and credit-card companies are falling over each other in an endeavor to get this type of business.

Having a bad credit score does not mean you are a bad person, nor does it mean you do not pay your bills. However, if you have never had a line of credit before, you will be regarded as having a bad credit rating.

Having a bad credit score does come at a price, and that price generally means if you are successful in your credit card application, you will have to pay a higher rate of interest against the use of your credit card.

However, all is not doom and gloom, because when used sensibly a so called bad credit credit card does come with a few advantages.

The card owner must be diligent at all times and be certain to pay all remaining balances completely when they become due, and preferably a few days in advance of the final payment date.

When used correctly some people refer to credit cards for bad credit as credit builder credit cards and it is easy to see why.

 

Short Term Loans

There is a rising trend of websites online that are offering short term loans to people that carry an instant guaranteed approval with no credit checks.

Should you come across these type of websites it is recommended you take some precautionary measures before taking any action.

First, check the grammar of any such websites. Several we have checked are far from perfect grammar, which suggest that caution is needed.

Also, check the age of a website. This is so you can at least make an educated guess as to whether or not you deem a certain website has the professionalism and expertise to offer you serious financial advice.

The reason for giving this advice is because these days many people work online to make money, and they are trying to make money in the form of commissions payable to them from finance companies, money lenders and credit card suppliers alike.

Consequently, there are some of these websites that appear to be profesional because of the fact that they are ranking on the first page of your favorite search engine.

However, after checking several of these websites it shows that they are ranking on the first page of google because of good SEO , (search engine optimization), tactics and not because the person behind the website has any in-depth financial knowledge worth writing home about.

This means, the text on the websites may not entirely true and the content is written in such a way that the promises made will get your attention, because it addresses the problems you may be experiencing and all the while the website offers you what appears to be the answer to all your prayers.

If you do not know how to check a website’s age visit any of these websites and insert the domain name you wish to check:

  1. com/domain-age.php
  2. com/domain-age-checker.php

Just copy and paste the above domains into your favorite browser and then insert the domain name of any website you wish to check. It’s that easy!

Do be wary of the kind of websites discussed above, because they really do not have your best interests at heart.

It is always recommended that you get professional advice from a financial expert who knows the ins and out of the financial world and someone that can advise you the best way possible.

After all, it is always better to be safe than sorry.

Emergency funding can be a genuine necessity at times, and in such circumstances it is always advisable to consider every option before making a definite decision as to which money lender you accept a loan from.

If you really do need a budgeting loan make a qualified decision and do not just choose the first money lender you approach.

Compare what each loan company has to offer you and that doesn’t mean the highest amount of cash.

Pay attention to all the variables such as fees and repayment schedules.

Also, be sure as to the amount you can afford to repay each month and consider the possibility of repaying a loan over several months , if possible, so that you do not leave yourself short of cash, which could mean you would need to apply for yet another loan so that you could keep yourself afloat.

Alternative Financial Services

Finance affects all of us in one way or another, no matter where we are or what we do or how much we may, or may not, earn.

Financial services and agreements are generally conducted within the regime of financial institutions as we know them, like banks, credit-card companies, insurance companies, credit unions and investment funds.

But there is a kind of a sub-culture within the financial sector that operates under the guise of what is known as AFS, or Alternative Financial Services.

There are literally millions of people who have no affiliation to the conventional world of finance as most people know it.

When people with small incomes or bad credit rating cannot benefit from bank loans or acquire a credit card, a financial void is likely to present itself in these peoples’ lives.

However, studies have shown that about 30% of Americans are affiliated with at least one AFS service for either part, or all of their financial dealings, while recent figures show that 25% of all the homes in the USA have used at least one alternative financial service and these figures are on the increase.

As previously stated in this article, when a need arises someone will most likely provide a product or service to satisfy the demand.

This is where AFSPs, (alternative financial service providers), play a role.

The services provided by the AFSPs cover such niches as check cashing facilities, payday lenders, auto-title lenders, pawnshops or even “rent to own stores” and these services are aimed at the low income population, who are generally not welcome at the more established financial establishments.

Car Loan or Auto Loan

Depending on where in the world you reside, one of the most expensive possessions you will ever own, or you would like to own, is or would be a car, or auto.

Loans of any kind are akin to finance and that is why we are including this topic.

We are going to borrow a quote from the French born Victor Hugo, (1802-1885), https://en.wikipedia.org/wiki/Victor_Hugo who was a man of many talents such as a politician, writer and poet.

He is renowned for saying, ” The future has many names: For the weak, it means the unattainable. For the fearful, it means the unknown. For the courageous, it means opportunity”.

This saying can also be related to today’s world of finance. Because there are many things that are unattainable for people in today’s world as they struggle day after day because they live a poor existence due to the lack of money.

Many people are fearful of their future and their families futures, not knowing what tomorrow might bring. That could mean losing one’s job and main income stream, or perhaps due to current financial difficulties and rising debt the possibility of having a brighter future could be something taken out of a nightmare.

For the latter part of the quote above, read more about that here. Just remember that no matter how bad things might be, they can always be better and you can help yourself in that regard.

But let’s get back to the topic of car finance.

Caution and awareness is the order of the day when looking at purchasing a new set of wheels.

Hopefully you have done your homework before even approaching a car salesroom, assuming you are looking at buying a higher priced auto where you need an auto loan.

At the very least, please remember to make use of an online car loan calculator so you get a visual view of the financial numbers involved with a car purchase, no matter if it is a new or second-hand purchase.

As advised previously in this article not everyone has your best interests at heart and especially where car finance is concerned.

Do your due diligence and make sure you can afford to make car repayments on time.

There are so many temptations and offers available, especially online, that it can be difficult to stay focused because everything is made to look so easy.

Most people do need car finance to buy a good quality car but that comes at a price, in more ways than one – especially if your financial affairs are not so healthy.

Financial middle men are online, waiting for people with bad credit or a less than good credit score, with claims that are penned to talk the hard earned cash out of your pockets.

Maybe some of the claims are true, but be warned they will not be cheap and if you default on a repayment you risk feeling the wrath of pending doom, and that is no exaggeration.

If you do not have the best credit score and you decide to opt for one of the many bad credit car loans just ask yourself what would your bank financial advisor say to you if you asked for the same kind of loan, before taking the final steps.

There are reasons why online websites make promises like these:

·         pre-approved car loans

·         instant approval guaranteed

·         no money down financing

·         bad credit refinance

·         bad credit history

·         no or zero credit

·         low or poor credit

·         bankruptcy record

Remember the old saying, “if it sounds to good to be true, it probably is”.

We have mentioned it before, but it is worth mentioning again, do your homework.

A large percentage of websites today are created by people who have no idea of how the world of finance works. They just know that there is commission to be made and that is why they want you to obtain a loan via a link on their professional looking website.

They have their own interest at heart, not yours!

Another thing to bear in mind is that should you make use of a car loan calculator clicking on any link that leads to an online car application website or form, (this could be a link that simply says “how to get a car loan”), then the website owner will most likely get paid a commission from your purchases or actions.

The upside to using an auto financing tool is the fact that you do not run the risk of damaging your credit score and you should be able to see within a few minutes if you could be eligible for  a car loan or not.

By doing your own research when looking for a good car deal it is never a bad thing to make a list of qualified dealers so you can shop around for the best deal possible before deciding who to buy which car from, be it used or new.

Depending on the size of your monthly repayments, some dealers offer an auto loan refinance service. You can do a preliminary search online using a car refinance calculator, so that you can get an better idea as to whether it is a good option to consider.

You can read more about refinancing a car here.

But do bear in mind that the people with the highest possible credit scores always get offered the best rates available, and if you wish you can always take steps to improve your credit score.

Cash Advance

There comes a time in everyone’s life where, due to unforeseen circumstances, a cash advance would be appreciated and very helpful.

This could be in the form of an increased credit limit from one’s bank that could be used to pay unexpected bills, like a car repair or damage to some form of property.

Cash could also be withdrawn from an ATM, (automated teller machine), machine at the borrower’s discretion, or he can pay for goods over the counter using whatever type of credit card, debit card or charge card.

Typically a cash advance incurs a 3% to 5% fee of the borrowed amount and this a daily compounding interest that starts on the first day the loan is given.

It goes without saying that getting a loan this way is not the cheapest way to borrow money. Therefore it is recommended to seek other and cheaper alternatives.

Student Loans

Because of the vast enormity of this particular niche within the finance sector, it is impossible for us to cover every area of financial aid to students because every country has its own rules, laws and regulations that govern their own particular area.

Therefore, our student loan section will be about “student loans in the United States”.

A more in-depth explanation can be read here or you can visit the studentloans.gov website

It is clear that if you are looking for school loans, student aid, grants for college or private student loans it is not going to be plain sailing.

A typical student generally has a bad credit score because of the fact he, or she, has not had the opportunity to buil

d up a good credit rating because of them being young adults. So their credit rating is practically non-existent, which unfortunately equates to a bad credit score.

There are different types of student loans and some students do manage to secure several loans while studying.

Some online resources that students and parents alike look for can prove useful and these could be:

•     student loan forgiveness
•     student loan
•     federal student loans
•     navient student loans
•     student loans.gov

Summary
Article Name
Finance Is An Education
Description
The word finance doesn't really tell us too much, yet it is a topic that concerns us all. Most people think of money, but it is much more than that.
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