Often unexpected expenses come up in life, catching us unawares and unprepared. When that happens, it is good to have the option of a personal loan to turn to for financial assistance.

Personal loans come in two types: secured and unsecured. Secured loans are less common. They require you to hold something for collateral, such as a car title or property. If you default on your payments, your lender is legally able to take your personal secured property.

Unsecured loans are less strict and much easier to get approved for. They require no collateral to get approved. However, they have many drawbacks to them as well, and borrowers should always know the pros and cons of their loan terms before they sign for one.

Personal Loans: What Are They Good For?

If you prefer to leave your personal property safe and not use it as collateral, you have the option of an unsecured loan. These types of loans have an easier application process and quick turnaround on distribution of money. If you need cash fast in an emergency situation, you can apply for a personal loan.

Unsecured personal loans can be applied for online from the comfort of your own home, and many times your approval or denial can be obtained in minutes.

Borrower Beware: Know the Cons of an Unsecured Personal Loan

Although there is no collateral involved in an unsecured personal loan, if you do not make your payments the lender still has recourse to take against you. They may be able to place a lien on your assets to ensure they are paid before you can sell your property.

They also may be able to take you to court and sue you for what you owe, plus legal expenses. Your credit score will be severely impacted, and your wages may even be garnished depending on the terms of the settlement.

Another drawback to unsecured personal loans is that the amounts you can receive are much smaller than secured loans. This helps limit the lenders’ financial risk. If you do not pay the loan back, they are only out a small amount.

You can also expect the interest rates to be higher if you are using a lender that does not run your credit, or approves you even with poor or bad credit. This high interest rate will make your monthly payments larger.

The terms will also be more strict if you can’t make your payments. High late payment penalties or rises in the interest rate for payments not made on time are very common with unsecured personal loans.

Weigh Your Pros and Cons

Before you sign on the dotted line, read the terms carefully. Be sure that you really need the money that you are borrowing, and that the monthly repayment terms are within your budget. Know your consequences and be willing to accept them should you end up having to default on your payments.

If you are comfortable with the cons of a personal loan, they are there for you to help you get through this difficult financial time.

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In uncertain economic times, having gold on hand is a surefire way to liquidize and protect your assets. Even in a stable economic environment, gold is a safe haven asset that will never fail you. This is because gold’s value increases instead of decreases in direct relation to the decline of value in paper investments, such as stocks and bonds.

To minimize or even eliminate a fall in portfolio value during economic collapse it’s best to invest in uncorrelated investments. What this means is that you want to own assets that will move the opposite way of other investments when economic times become uncertain. Gold is one of the few guaranteed investments that are uncorrelated to many other investments. This makes it a very safe investment that has proven to remain positive when stocks fall.

This means that allocating some of your investment to gold is a sensible and solid choice. However, the buying of gold bullion is not always as straightforward as one would hope. There are plenty of precious metal dealers who will gladly take your money without having your best interests as a customer at heart. To avoid falling for an unscrupulous dealer, you’ll have to do a little research into finding the best dealer so you can purchase gold with confidence.

Online vs. Local

In general, there are two main ways to buy gold: online or locally (in person).

Local precious metal dealers can be found in cities around the world. However, brick and mortar stores will often come with a lot of overhead. This is due to rent, paying employees, security, and more. This added overhead and the fact that local gold dealers often have lower sales volume means that they will often have to charge more for gold bullion to make up for their costs.

On the beneficial side, a local gold dealer will mean that you will be able to physically inspect the bullion and take immediate possession of it when you purchase it.

Local dealers also have more of a reason to care about their reputation in the immediate community they serve, which may translate into higher quality of service when dealing with them.

Also, if you’re only buying small quantities of gold and you’re paying for it with cash, your purchases at a local dealer might not be reported to the tax authority and can stay confidential. If this is something you are considering, make sure you discuss it with your dealer to make sure you stay below the threshold for reporting.

The other option for purchasing gold bullion is through an online dealer. Online dealers typically do more business and will have higher volumes of sale and much lower fixed costs. This means that you can often find good gold bullion at a solid discount online.

Online dealers will have a much more varied range of products in stock and many even offer convenient buy-and-store programs that permit you to purchase the gold bullion and then keep it in an insured and protected location made available by the dealer. This can be very beneficial since storing your own precious metals can be risky.

Some people are nervous buying bullion online, since it is such an expensive product. However, if you are able to find a dealer with a long, solid history and positive reviews, you will most likely be in good hands.

Unfortunately, buying gold online means that you will have to pay for shipping and handling costs (which are not cheap when it comes to materials of this value), and you will have to wait to physically take possession of your gold. Some online gold dealers like Lucius Precious Metals offer free local delivery for orders over a certain price point, which can be something to consider if you’re in the area.

What to consider when buying gold for delivery

If you are purchasing gold online and looking to have it delivered to you, you’ll want to consider a few things.

First, you want a dealer that has a strong and solid reputation and years of reliability. Read customer reviews and check out investment forums to make sure your chosen dealer doesn’t have any shady reports out on them.

You also want to make sure that the dealer sells only gold coins and cold bars from LBMA-approved wholesalers. This is your best guarantee that you will be purchasing authentic coins and bars.

You’ll also want to check out the dealer’s premiums on bullion. This can vary widely throughout the industry and is not a set-in-stone number. Lastly, check out the difference between buying and selling prices on the dealer’s site, which can be as high as 10% or more.

To maximize your long-term profits, you need to work to find a dealer who is reputable and trustworthy and offers low premiums.

What to consider when buying gold for storage

If you’re buying gold for storage, you still want to check out a dealer’s reputation, bid-ask spread, and other factors mentioned above, however there are other factors that come into play when buying gold for storage.

For one, you’ll want to examine the storage facilities where your precious metals will be kept.

Gold bullion should be stored with a reputable, separate entity so as to reduce counterparty risks. Ideally, you’re looking for an LBMA-approved vault provider like Brinks. These types of companies store gold reserves for massive financial institutions and government bodies. This assures that your gold is being stored in a secure environment.

When storing gold, make sure that your dealer offers insurance that will cover the full replacement value of your coins or bars in the event that something were to happen to them. Full replacement means that you will get back the physical equivalent of the gold lost, and not just the cash value—which is based on the spot price of the metal.

You’ll also want to make sure that your gold is fully allocated to you. This means that it is held in your name, you are the outright owner, and the gold can be made available for delivery or sale at any moment. Unallocated gold bullionis shared by investors who own an interest in the bars, which raises all kinds of liquidity issues that we recommend avoiding.

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Cash in a Flash! Well, How to Generate Funds Quickly, Anyway

Short of robbing a bank (which incidentally, we’d NEVER advocate, just for the record) there’s precious few ways to get our hands on a lump of cash in an instant. Or so you might think. However, there are far more legit ways to fund ourselves, which involve neither masks depicting former Presidents of the United States and/or a job lot of Mini Coopers, if we’re mixing our heist movie metaphors. So, what other avenues can you venture down to put your hands on a shed load of money before you can say “This is a hold up!”

Which of course, it isn’t/won’t be.

Finding ourselves short of cash at times when we need it most in our life is not unheard of. On the contrary, as most of us will experience this feeling at some point in our natural, as it can happen to pretty much anyone. Scenarios which tend to create this sense of dread and subsequent cold sweat/blind panic include unforeseen car problems, unpredicted job losses and/or an undetected illness coming to bear. The question is, who do you turn to for help in your darkest hours?

Many people would suggest that you try a good payday loan lender, and there’s many arguments as to why this would be amongst the best choices you could make when faced with this situation. But then you must also be aware that aside from payday loan lenders there are a number of alternative methods you could look into, all of which might be able to free up some much needed funds here and now. Below we take a quick look at just a few of these.

Cash in Your Life Insurance Policy – Not all of it, obviously. It’s just that should you have been in possession of a whole life insurance plan for so many years; the chances are that you’ll have accumulated a decent amount of equity that you could, hypothetically, borrow against. Understandably, if you exercise this right at this juncture, the upshot is you’ll reduce the amount paid out at a later date, but on the plus side at least you won’t be accountable for any taxes if you choose to cash out (as it were) right now.

Home Equity Loans – Adhering to a similar principle to the one outlined above re: life insurance policies, providing that you’ve paid a decent amount into your existing mortgage plan already, you could be able to borrow against the equity of your property. Reverse mortgages could also be a makeweight at this testing financial time in your life, although they only really come into play for those who own their homes outright. But as a cautionary note, it’s worth remembering that both these types of get out of jail free cards come at a price. That price being both types of short term loans to yourself will need to be repaid further down the line. Failure to do so might put your home in jeopardy.

Consider Visiting a Pawn Shop – Careful how you spell/pronounce this one, but actual pawn shops (the modern, more socially acceptable version of these being the likes of Cash Converters et al) are in the business of giving you no-questions-asked short and medium term loans. And the best bit is, there’s usually no restrictions placed on the arrangement of said loans or how you choose to spend the funds recruited. The flip side is that pawn shops only ever lend you a percentage of your item’s monetary worth, plus they do have a habit of charging significantly high interest rates. Oh, and don’t forget. If you fail to repay the loan, your possessions become the loan providers. So think on, if it’s a family heirloom you’re swapping for some much-need folding stuff. That said, if needs must there are worse ways…..

Cards are a Gift Horse – A recent study revealed that in the region of £300 million worth of gift cards went unused in the past few years, which is a staggering amount of money to be sitting on and not actually doing anything for you. Collectively, that is. There are various ways in which to cash in your unused or wanted gift cards too, where monetary recompense isn’t quite the face value, but nevertheless better than the nothing it’s generating sat in your wallet or purse.

Rent a Room out – Most people are under the wrong impression that Airbnb rentals are all about summer holidays, and homeowners who allow you to rent out their gaff whilst they themselves are away somewhere for varying lengths of time. But this couldn’t be further from the truth, as a growing number of the website’s listings encompass both extra and/or shared room arrangements. So, effectively, you still live in your house but allow other (rent-paying folk) to come and go. Works better of course, if you live in a picturesque area and not next to a cement works or something.

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You may utilize fixed-rate personal loans as an important debt consolidation tool. Such debt may include meeting some forthcoming expense or credit cards depicting higher rates. Your car or property can be used as collateral while financing a secured personal loan. On the contrary, there’s no need for collateral to back up an unsecured personal loan.

Check Out a Few Good tips to Achieve Better Rates:

Take a Look at Your Credit Score

You may achieve loans with a much lower rate of interest when you possess a higher credit score. Financial institutions don’t take any risks, but they wish to earn good returns on the money that they lend. You must assess your entire credit situation prior to applying for a loan. Your loan application stands a higher chance of being rejected if you aren’t aware of your risks. You must run your eyes through your credit report before even applying for your first quote. The three major credit reporting agencies can provide you with free copies of the same every year.

Improve the Current Credit Score

You must do all it takes to improve your credit score if it doesn’t look satisfactory in the report. Before you even set out on applying for a loan, you must get the errors rectified. You may not even recognize some of the errors like that those concerning unpaid accounts; these errors will certainly leave a strong impact on your credit score. They would even lower your chances of securing a personal loan with a lower interest rate. Likewise, you must also take care of all collection accounts and unpaid credit cards that yield a poor reflection on your report.

Do Some Smart Shopping

A credit inquiry is triggered by each loan application that you submit with a lender. Such an inquiry has an adverse effect on your credit score. Your credit score takes a major hit when you apply for multiple personal loans simultaneously. You must choose loans with credit standards that seem to be affordable for you. By visiting a lender’s website, you may easily find out the minimum credit score that you ought to have in order to submit your loan application with them.

Identify the Right Banks

Apart from a few online market-places, you may check out the prospect of obtaining a loan from banks wherein you already have a savings or checking account. If you’ve succeeded in establishing a long-term banking relationship through your first mortgage or deposits, they’re more likely to provide you with discounted rates or other great deals. Even by enabling your savings or checking accounts to allow an automated payment each month, you may achieve an extra discount.

Draw a Budget

You must check out your affordability before you even try to obtain the best rates. Prior to submitting your loan application, you must understand how much you should actually consider as a reasonable payment every month. Drawing the right budget plays a crucial role over here. You’re more likely to face a problem down the line if your budget gets stretched in order to meet your monthly payments. You don’t need to get over-stretched in order to achieve an inexpensive rate. Winding up more in terms of debt is the last thing that you’d want right now.

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In buying new properties, individuals eye bridging loans as their first option. This is especially applicable if they don’t have the required cash yet. Most of the home buyers choose to avail this type of loan because of the fast processing time compared with other loans that need longer waiting time. The best thing about bridging finance is that you can also use it for business purposes.

Bridging Loan for Business

A business can take full advantage of a bridging loan to ensure smooth-sailing business operations for a definite period. A specific business can avail this type of loan depending on the overall value of the business’ office and premises. The sum that will be loaned can be used to tide the company over a specific time. Acquiring the appropriate bridging loan for your business lets, you enjoy the benefits and advantages.

For instance, it can cost more compared with other loans if you commit these common mistakes in applying for fast bridging loans.

Unable to Clarify the Details of the Interest Rates

One of the most significant deciding factors, whether you’ll pursue a loan or not, is the interest rate. It can also determine how expensive and costly a loan can be. To avoid having a problem, don’t sign up for a loan that incurs a higher interest rate. It will surely be a burden that is hard to handle.

It’s best if you will canvas first for the best terms and most affordable loan for your business. You might think that you know how to calculate your interest rates, but most often you don’t. Before signing a contract, make sure that you can compute and double check for the interest that it’ll incur over the months or years of loan payment. Remember, the interest rate varies, and it could depend on how an individual or business handle their finances. The interest rate can be compounded over time if payments are delayed. If you came across a bridging finance provider, talk with their professional bridging loan broker to know the available options for you.

Unaware of Hidden Charges

When dealing with bridge financing, you need to consider the origination fees. Most lenders charge borrowers with charge origination fees which are deductible to the original loan amount. The cost can have a significant impact on the interest rate you are paying, depending on the amount of money borrowed. The concept is similar to ATM fees that seem like a very minimal amount but can cost you big over the long run.

When borrowing bridging loan fast processing and releasing, be aware of all the accompanying fees along with the capital infusion. These fees can include the application fees, contract fees, processing fees, and other kinds of fees set by the lender. Carefully consider your options to avoid unsettled and delayed payments.

Opportunity Cost as Real Cost

Most banks take up to half a month to review a loan application either by an individual or commercial. After approval, there is still a waiting time for the actual release of the fund for the loan.

Treat time as money. Look for reputable lenders who can move and process your application at the speed of today’s business. Choose a lender who can streamline the application process so you can spend your time on other important things.

Intangible Costs for Short Term Loan

In bridging loans, your loan amount and payment terms matter. Some companies that are in need of working capital are availing smaller amounts and paying it within a short period.

In this kind of situation, the interest rate is not that significant since the amount borrowed is small and paid back quickly, such sort of financing would not provide the substantial amortization costs that are accrued on loans accrued in the more extended payment period.

You Are Not Aware That You are Financing

Most financing errors happen without you realizing it. You should know that the situation wherein you are financing, so you will not be caught off guard of all the incurring fees during the repayment due date. Being aware will also help in preventing misconceptions and misunderstandings regarding your loan terms. Or better yet, talk to the best bridging loan broker who can enlighten you regarding all the technicalities of bridging finance.

Financing is essential not only to individuals but companies as well. To get the best out of it, one should understand the factors and considerations before pursuing a loan. Avoid making mistakes when dealing with finances to ensure that you’ll get the value you deserve for your loan needs. Are you decided to file bridging finance? Check out a bridging loan in Manchester and explore the options made available to you.

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