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How To Help Your Family Financially

Admit it! Financial conversations can be awkward, but your relatives can save you in the future. Support them and your relationships with the help of these tips:

PROVIDING A LOAN

One of the most controversial yet clear-cut way to help a family member in need is by providing a loan. The loan is ideally short and straightforward. One must write the terms and conditions that both parties will sign into. This will help ensure a binding financial agreement. Other details that you should clarify include:

a. the total amount of the loan,
b. the installment conditions (e.g., monthly basis),
c. the interest rate calculation,
d. the payment deadlines, and
e. the legal action necessary to cease the payment.

CHIPPING IN AS A GROUP

Tackling a dilemma as a group will maximize your efforts and resources. Say your parents are asking you for an allowance. If your siblings are in a capable position to contribute their funds then, you must ask them. However, you must access whether they have a good relationship with your parents too.

Please involve your partners in the discussions as you do not want to create resentment between siblings and their spouses. If they cannot afford to loan money, they may suggest other ways to help (e.g., accompanying your parents during weekend errands).

EXTENDING AN OFFER

Providing a short-term loan can only last for a specific period of time. On the other hand, offering a means of living can go a long way! Consider hiring or recommending your relative to assist your company’s needs. The job can help him or her to earn money for paying bills or debts.

Image Credits: pixabay.com

Treat your relative like any other employee. Layout the job description as well as the task deadlines. Ensure that you will be able to deal with incomplete or poor quality of work.

GIVING NON-MONETARY ASSISTANCE

Some people may not be comfortable with the act of loaning money without the guarantee of getting payment. If you are unwilling to give cash to a family member, opt for giving non-monetary assistance such as gift certificates or gift cards. This way, you will have more control over what your money will be used for.

Image Credits: pixabay.com

No arguments there! 🙂

Sources: 1 & 2

Essential Tips On Finding The Right Loan For Your Needs

You have a stable job right now, but since you’re thinking of embarking on a new business soon, you’ll need to acquire a loan. You need the money to purchase your supplies, to hire people and to market your business’ existence. And while you’re certain that you need a loan for this endeavour, you still don’t know how to actually to find the right loan for your needs. In your mind, you think this decision is crucial because the success of your business relies on it – and you’re right. To help you out with your dilemma, consider the essential tips below to find the right loan for you:

How much do you really need?

Just because a lender offers you a loan worth thousands of dollars, doesn’t mean you should take it immediately. Keep in mind that the bigger amount you borrow, the bigger your payments will be – and this can become an issue if your business isn’t as successful as you’d like it to be. On the other side of the coin, if your loan is too small, it might not help you in any way, and you’ll end up paying for high-interest rates. To avoid being placed in this kind of situation, carefully think how much you need for your business and look for a lender which can give you that amount.

What is the interest rates?

Aside from the loan amount itself, you should also consider the interest rates associated with it. Is the lender offering you the amount you need but has very high-interest rates? Are there any lenders in the market who can give you a lesser interest rate? Think about these things first before choosing a loan. It’s also essential to ask the lender if there are any other fees or penalties to be paid after you received the loan. All of the processes involved in the loan should be transparent to you to avoid problems in the future.

What’s the term?

Different loans have different terms. Some loans can be paid for six months while others, in ten years. Since you’re still starting a business, it might be best to settle for a loan which will require you to repay within an extended period of time. This will allow you to save up for the interest rates and the loan, without putting your business’ operations at risk.

Aside from the things you’ve read from this article, it’ll also help if you can actually work with experts when it comes to finding the right loan for your needs. Places like oinkmoney.com may be a good starting point.

Be A Responsible Borrower

Finding the right loan for your needs is never easy. There are several things to think about to come up with the best possible decision. You also have to keep in mind that your responsibility as a borrower doesn’t end the moment you receive the money – you should pour in your time and effort in order to pay all of these in time. If not, your life may be affected negatively. Remember all the things presented in this article, and for sure, you’ll come up with a decision on which loan to get without compromising your financial health in the long run.

Sarah Porter

Sarah Porter is a money-savvy writer and mum of two based in Manchester, UK. She is the Brand and Marketing Manager at the UK loan website Oink Money (oinkmoney.com), as well as the founder of a well known money-saving website. Sarah is originally from Edinburgh where she studied Business and later worked in finance for a FTSE 100 company. She left her career in finance to pursue her passion for writing, a move which allowed her to travel the world with her laptop while running her blog.

Newbie’s Guide To Singapore’s Credit Bureau

The Credit Bureau (Singapore) is a principal credit consumer agency, which has the most comprehensive industry uploads originating from all the major financial institutions and retail banks. Credit Bureau (CB) is a joint venture between the “Infocredit Holdings Pte Ltd.” and “The Association of Banks in Singapore”.

The Monetary Authority of Singapore’s (MAS) vision to improve the public’s risk management capabilities is in lined with the holistic embodiment of CB. How is this so?

The Banking Act allowed the members of CB (e.g., credit card companies) to reveal credit-related data for the strong purpose of analyzing the creditworthiness of existing and potential customers. Simply, CB presents a “complete risk profile” of a particular customer to a particular credit card provider.

This complete risk profile includes a tangible number called the Credit Score. The Credit Score is an independent assessment of an applicant, which guides the decisions of the lenders. It is gauges the likelihood of repayment as well as the probability of going into default. You must pay close attention to your Credit Score if you are planning to apply for any forms of loans or credit. For instance, you and your spouse need good Credit Score to successfully take up an educational loan for your children.

Image Credits: pixabay.com

Say your Credit Score has been in its low point for the past 2 months. Wary not, my friend. You may still rejuvenate your credit history as the reports from the CB manifest your record on promptness over a 12-month period. You read that right! You have the ability to technically “undo” a poor credit history due to late payments and unmet minimum repayment sums. However, paying your monthly credit card bills and loan installments on time must be your top priority for the next 12 months. Doing so will only clean up a section of your credit report known as the “Account Status History”.

Hope fades when your problems go deeper than late repayments. Serious financial situations such as bankruptcy proceedings and debt management programs will remain reflective on your credit report. You have to be careful to secure a pleasant future!

Sources: 1, 2, & 3

Do’s And Don’ts When Loaning Your Money To Family And Friends

Family gatherings and friendly reunions can be less awkward if you follow these tips:

DO FIGURE OUT THE WEIGHT OF REPAYMENTS

A friend or a family member asked for financial help from you instead of loaning from a credible financial institution. Before anything else, you must ask yourself about how important it is for a person to repay you. Are prompt payments necessary or will intermittent payments work?

Keep in mind that if an individual approaches you, it is typically due to weaker credit history. This means that there is a risk of not receiving the repayment. You must figure out the weight of repayments earlier on before emotions get in the way.

DO NOT EXPECT FOR ANYTHING IN RETURN

When you do good deeds for others, it best to not expect anything in return. There is nothing wrong with earning the cash you previously had. However, you may feel disappointment if you are expecting more than what you have agreed upon.

Reciprocity is not a part of everybody’s values. This is why it is unfair to place personal expectations on unsuspecting family members or friends. This statement does not only apply to loans.

DO GET EVERYTHING IN WRITING

If you are releasing a relatively large sum of money or if you are strict on full repayment then, you must get everything in writing. Make an agreement that states the terms of the loan. This agreement is called a promissory note. Have the promissory note signed by both parties and and a lawyer (if possible). This will ensure that pursuit of legal actions when necessary.

You may also document the entire process before handing over the money.

DO NOT BE TERRIFIED TO SAY “NO!”

Your hard-earned money belongs to you and you are in charge of it. If you do not feel comfortable in lending money to a friend or a family member then, be assertive. Genuinely say that you cannot loan the money at the moment due to your financial responsibilities. Discuss the matter in a mature manner.

People who care about you will understand. If they take it against you, you may be better off without them.

DO OFFER GENTLE REMINDERS

All was said and done. To approach the situation in a warmer light in respect to your relationship with the borrow, offer gentle reminders instead of asking direct questions. You are not in the business of interrogating or threatening people about repayment. Instead, you want to cultivate an smoother discussion.

Image Credits: pixabay.com

Sources: 1, 2, & 3

Ultimate Guide To Handling Credit Card Debt

The credit card is one of the most powerful tools of our nation’s consumers. With that power comes great responsibility. Financial problems can occur if you are missing your credit card bills’ deadlines, constantly transferring balances, and paying your primary card debt with a supplementary card.

In Singapore, over 9 million credit cards were issued as of November 2015. The credit card debt of these cards, worth over S$5 billion, are in the form of balances rolled over to the next statements. Shocking and scary at the same time, is it not?

This is why handling your debts is vital to personal finance. May this tips help keep you on track:

1. DETERMINE THE BALANCES AND INTEREST RATES

The first step in taking control of your credit card debt is understanding how much you really owe on each of your cards. Write down the balances and interest rates for each card. If the interest rate is above 10% then you must transfer this balance to the lowest “interest giving” account. This way, you will be able to pay off the balance at an interest rate you can afford.

2. REQUEST A CREDIT REPORT

Request for your credit card report/s to assess the total amount of debt you owe as well as how bad the situation is. A credit report has the records of your payment history, credit facilities, late payments, bankruptcies, and defaults.

If you saw some inconsistencies or problems on your credit report, call the various authorities to fix the issues. Remember that you are able to repair any past mistakes sighted on your credit report.

3. CONSIDER A DEBT REPAYMENT PLAN

Be honest about your situation to your bank and discuss if you can convert your outstanding balances and unsecured loans into a debt repayment plan. To ease your burden, the debt repayment plan allows you to repay your credit card debt by installments. Pay the debts with higher interest rates first followed by those with lower interest rates but, watch out for penalties.

4. PAY MORE THAN THE MINIMUM

Making the lowest possible payment leads to more interest and time spent in debt. Pay more than the minimum requirement in order to get rid of these dilemmas.

For instance: If the outstanding balance on your card is S$2,000 and its interest rate is 18%, you are required to pay a minimum of 2% of your balance each month. Paying the minimum of S$40/month means that it would take you more than 5 years to pay off your debt in full. During that time, you paid an additional of over S$4,000 in interest. If you increased your payment even slightly, you can get rid of your debt in no time!

5. SEEK PROFESSIONAL HELP

If the above options sound confusing and unattainable, it is time to battle your debt with the experts. Luckily, there are a number of organizations and individuals that are qualified to give you support to finally get rid of your financial problems. Start by approaching the Credit Counselling Singapore through ccs.org.sg.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, 3, & 4

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