Category Archives: Loans

Shopping For An Auto Loan?

Posted on by
Reply

It is obviously a better idea to pay cash for a car purchase. But that’s not a viable option for many. They are comfortable with partly payment to the lending house as part of their loan payoff scheme. If you are shopping for an auto loan, it is important to consider the best deals only. Being driven by wrong belief, many potential borrowers never swivel their attention from working it out at the car dealership. This way, they only miss on chances to get a better rate, a plenty of which are for grab. Some think about rolling their old car loans into a new one, which may not be a better idea always.

Go with the following flow to know how you can shop around the best auto loans:

First, decide which car make you want to buy. If you are looking for a luxury ride, it means pouring of the more liquid fund. For any rational buyer and borrower, the choice should be a function of his/her affordability. Ideally, an auto loan should be paid in 3-5 years and that could give you a peace of mind. You can take out more money if you can afford. However, borrowing more than requirements never makes a good sense even if you can afford it.

Approach your local credit union if it will pre-approve you on your auto loan. The credit union is likely to get you the best rate. You can also place a call to your current or local bank or meet the authority in person to know what it charges for an auto loan. The loan is likely to come up with the lowest interest rate if you already have a draft for automatic payment from your account. Also, inquire if your bank has other discounts to offer. Take time while shopping for an auto loan as you need to get quotes from different institutors and go through details of the offers. Make sure to compare the rate as charged by the credit union and your bank with that of a car dealership, it is the ideal way to make the best choice.

Wherever your auto loan is sourced from, you will be asked to submit your income details along with residence proof and credit scores. If your lender does not require these during pre-approval stage, then you may need to submit them while signing the deal. However, the unscrupulous lending houses won’t ask for these but you must avoid them at any cost; otherwise, you are more likely to discover hidden charges at the time of pay-off.

If you already have an old car, sell it off instead of ‘trade in’. It will bridge a gap between the required and received by a good extent. Also, make it sure not to merge your new loan with the existing one. You will be sagging under a burden that is heavier than your loan’s worth.

Once you are done through your car selection, you should ask the loan officer regarding how to proceed. This often involves enquiring about a car dealership. Once the procedural work is complete, the dealership will hand the title over to you. The title comes with a note mentioning the lien on it. When the title is changed in your name, it will be mailed to the institution where you have sourced your loan from.

Take Care When Thinking Of a Personal Loan

Posted on by
Reply

Personal loans are mainly taken for the use of personal purposes that may be for the clearance of an unbearable debt, business purpose, buying property etc. It is quite different from other types of loans and it has some different features as well.

If we look at the features of personal loans we will find it quite friendly as in

  1. Any one above 18 years and below 65 years can ask for a personal loan
  2. It is an unsecured loan as it does not need any guarantee as other like home loan.
  3. The process to get it is very easy and it does not take so much time.
  4. The banker or the loan provider does not ask too many questions if the basic eligibility criteria are fulfilled.

Generally people having credit challenges or suffering from financial trouble go for personal loans as it helps to come over the situation in a short time with ease. In short people use it for rebuilding credit scores.  But such loan has a drawback as well which is it imposes a huge rate of interest although there are some financial institutions that offers a comparatively low rates of interest.

As per the experts whenever going for a personal loan one must take care of certain thing like

Choosing a reliable lender:

This is the most important factor. As nowadays there are hundreds of companies existing offering loan with different rates of interest one might get confused. Having experts’ advice can help the best in such case. A legitimated professional will guide the best considering all his state of affairs and will refer the best destination.

Never go beyond affordability:

This is the most common mistake people make. Before taking the loan one must be assured that he is able to repay the entire amount on time or else it will only add some extra negative point to his credit score and damage the image in front of the lenders. 

Go through the terms and conditions carefully:

Before signing any agreement the borrower must go through all the term and condition mentioned in detail. If he gets stuck somewhere or not getting properly, should ask it to the lender then and then or else it might come out as something unexpected in future and the borrower will not have any right to deny it. 

Be clear to the lender:

Never hide any information or document from the lender while taking the loan. It might work in the short run but in long run it might bring in a negative result along with a grieve situation. 

Don’t go for more than one provider:

It is also one o that mistake many people do most of the times getting tempted. But before going for several lenders one must keep in mind it is not only about borrowing only but repayment s well. So because of borrowing from multiple lenders the debt may become unbearable and the credit history worst. In future he may fail to get further loan even for emergency purposes.

Looking for short term finance? Please visit our website: Noble Funding

Five Ways to Ensure Obtaining The Best Mortgage

Posted on by
Reply

Obtaining a mortgage is proving a significant challenge to home buyers in the current climate. The economy remains problematic and this has enormous implications for the housing market. One issue is that mortgage lenders lack faith in borrower’s capacity to repay their mortgages. Moreover, the cost of living is going up but at a faster rate than pay, thus many people’s money is not going as far as it used to.

It is not impossible to obtain formal mortgage approval; as long as borrowers take the following 5 considerations into account:

1. The Size of Deposit

This is one of the basic elements of applying for a loan and purchasing a property. Lenders want to see borrowers offer a substantial amount of their own money to put towards a property. It demonstrates financial stability by confirming the ability to save, and displays a commitment to taking on the debt and responsibility inherent with taking on a mortgage.

The size of the borrower’s deposit will impact how much monthly payments are likely to be required. Similarly, the interest rates attached to a smaller deposit, for example 10%, are likely to be higher than if a borrower can afford a deposit of 15%. Whilst it may take longer to get on the property ladder, a bigger deposit will always save borrowers money in the long term.

2. Provable Income

A mortgage borrower does not have to be earning a six figure salary to demonstrate financial stability. However, the higher the salary, the more positive lenders will be towards the prospective customers. A higher salary suggests more disposable income and flexibility when it comes to putting money away for savings, which is always a challenge in the current economic climate. With the rising cost of living, many first time buyers struggle to put substantial amounts of additional funds towards a deposit.

3. Maintain a Clean Credit History

Having a good credit history is one of the most integral parts of the mortgage approval process. Having a good credit score shows the ability of prospective clients to handle their finances. A poor credit score can mean that higher interest rates will be charged, given a smaller credit limit or even rejection of the application. Credit history can be improved by showing a lender that you are a responsible borrower, which might mean taking a credit card to demonstrate a history of meeting credit obligations. In the case of taking credit cards, it is recommended that only small amounts should be spent and balance cleared in order to avoid being charged interest. This has to be done for at least six months to ensure positive results.

4. Ensure Reasonable Borrower Requirements

When applying for a loan, borrowers should be honest with their lenders about what they are looking for and realistic with their expectations. This often means that prospective borrowers need to re-evaluate and scale their requirements to fit an affordable price bracket. Thus, when an applicant is being realistic with what they are asking for, lenders are more likely to approve a loan.

5. Understand Lender Risk Appetite

Lenders expect full disclosure from all mortgage applicants. In order to evaluate the risk, lenders want to have as much information about an applicant’s financial position as they can.

However, some applicants do not have a completely clean financial record. In such circumstances applicants should pay off what debt they can, and secure the remainder on an affordable repayment scheme.

By having an understanding of these areas, a borrower should be able to prepare themselves thoroughly when applying for a loan, thus stand themselves a better chance of securing a mortgage.

These tips for obtaining the best mortgage are brought to you by Capital Fortune London Mortgage Brokers who assist clients inside and outside the UK obtain finance.

How to Get a Car Loan With Bad Credit?

Posted on by
Reply

Because the majority of loan terms are dependent on your credit history, it’s always harder for low credit score borrowers to get approved. However, now through the end of 2012 will be the best time to get a car loan or refinance your car loan regardless of your credit. And if you have bad credit, your chance for car loan approval is better, and your ability to negotiate terms is much greater.

First things first, take a look at your credit history and credit score, and decide what you can change to make your credit even better before you approach a loan company. Credit scores range from 350 to 900, 350 being very poor credit and 900 being pristine credit. Usually, credit scores are defined in these levels listed below:

  • Below 550: Poor Credit
  • 550-650: Less Than Acceptable
  • 650-750: Acceptable
  • Above 750: Near Perfect

If you are on the edge of one of these levels, it would be worth your time to put some effort into fixing your credit history. Your credit score is affected by your payment history, outstanding balance, account age, types of credit and number of inquiries from your creditors. It’s best to attack all these components at once, but if you’re in a time crunch or overwhelmed by the bulk of fixes, pick one or two. The most influential factor on your credit history is your payment history and outstanding balance. To attack these, make sure you’re making your payments on time, and your balances are at least 30 percent below your credit limit. The lower you can make your balances, the better your credit score.

When you’re ready to start applying for loans, select a modest compact or midsize vehicle. Budget your expenses properly and save for a car that fits your needs. If you approach a lender with poor credit and risky loan terms (like long term, high payment terms for an expensive car), you’re more likely to be denied. Smaller cars will give you a lower interest rate and a lower insurance cost. In addition, you’ll spend less money on gas, and spend less time maintaining this car as smaller cars usually need less upkeep over the years. (TIP: Driving appropriate speeds and making sure your tires are always inflated properly is another way to save money on gas!)

Next, find a lender who specializes in car loans for bad credit borrowers. Although there are a lot of car loan companies out there right now, many of them have done loan shoppers a favor by advertising their specialty (i.e. loans for poor credit, refinance loans, simple interest, long/short term, etc.). Car loan companies who do most of their work in refinance will be much more comfortable working with you, and will give you advice and tips to help lower your interest rate, too!

Last but not least, try to get approved before you go to the dealership! Especially with poor credit, you’re less likely to get a good deal if you just walk into the dealership and let your salesperson negotiate with you. Walking in with an approved car loan will give you the advantages of a cash buyer. You’ll also stick to your car budget much better with a loan in hand.

This fall is a great time to apply for a car loan. The prices are still low from the recession, and so are the interest rates. Even with bad credit, you’ll reap a lot of benefits by applying now.

Should You Pay Off Your Mortgage?

Posted on by
Reply

Everyone dreams of one day owning their own home and no longer being under the thumb of the bank for the mortgage. When people get some extra cash, they often think about paying down or paying off their mortgage, but that may not always be the best idea. Sure, not having that monthly payment is nice, but make sure that’s the best place for the money to go. 

Here are several things you should consider if you are considering paying off your mortgage today. 

How’s Your Nest Egg? 

Paying your mortgage down won’t do much if you end up losing your job and can’t make the monthly mortgage payment. Here’s another idea, instead of putting the money towards the mortgage, place it into an interest bearing savings account. 

A good rule of thumb is to have as much as a year’s worth of expenditure in case of an emergency. Do not count on your home equity to bail you out either. With home prices dropping, you may not get nearly as much equity as you think. It is better to have the money in your hand and then put it towards the mortgage principal later.

Should You Pay Other Bills? 

How much credit card debt do you have? Often times, the interest rates on those credit cards are much higher than the one on the mortgage. You may be paying a significant amount of interest on your credit cards, which takes money away from your home and family. 

If you fall behind on credit card payments, you may end up ruining your credit score. If you find you have a little extra money at the end of the month, put it towards your high interest accounts in order to get rid of those accounts as soon as is humanly possible.

Would You Feel Better With Your Mortgage Paid Off? 

So far, the tips I have outlined in this post have all been considerations on why you should not pay off your mortgage, but it really all comes down to your personal view point. If you are a nervous wreck and are constantly worrying about losing your dream home or missing a mortgage payment, then maybe the best thing would be to pay off that mortgage once and for all and take that worry off your mind. It really is a personal preference.

How Much Would You End Up Saving In The Long Run? 

The whole point of paying down or paying off a mortgage is to save money on the interest that you are paying every month. With mortgage rates still at record lows, you may find that making multiple payments per month or a one-time lump sum payment may not end up saving you a lot of money in the long run. 

The interest on your home is deductible from taxes when you file your 1040 form on Schedule A and not many people think about this when factoring in their savings. If the interest rate on your mortgage is high, then maybe refinancing into a new low interest home loan instead of paying down the mortgage is the answer for you.

How to Secure a Mortgage Loan Despite Negative Credit Report

Posted on by
Reply

The home mortgage debt amount has decreased from previous years. But there are very little fluctuations in this segment. Between the second quarter of 2013 and 2016, the mortgage debt amount remained almost the same. The stat figures suggest various people are opting for mortgage loan.

A poor credit score makes it difficult to obtain a mortgage loan. If your credit score is not impressive, then you’d get a mortgage at a high interest rate. Like a vicious circle, this will further affect your credit score because many a times, consumers are not able to pay off the interest rate for it being very high.

Improve your score

This is a must if you want to have a lucrative mortgage deal. But it’s not easy, rather quite difficult. How can you fix your score and have a mortgage loan at a flexible interest rate? Let me discuss that in this article.

Negotiate with creditors

What’s your objective? Your objective is to present a glowing credit report in front of the lender, so that he grants you a mortgage loan at a low-interest rate. Negotiating with your creditor is the very first step you can take towards this direction. Don’t expect a goodwill adjustment from the creditor if you don’t have a good relationship with him.

Creditors may agree to remove late payments and collections from your credit report, but they may ask you to sign up for automatic payment in return.

Don’t apply for loans

You are strongly advised not to apply for a new credit card or a new loan. You might be thinking of applying for an auto loan. My suggestion to you is, don’t. An application for a loan shows on the consumer’s credit report as a hard inquiry. Click here to know about hard inquiries, and how they affect credit scores.

When you are in the middle of getting a mortgage, it’s assumed that you have sufficient credit. But an application for credit proves otherwise. I advise you to wait until you are through with mortgage process, and then apply for a new loan. Or else, you can collect money from your friends and family members, so your credit report stays unaffected.

Reduce credit card balance

Cutting down on credit card balance can help you fix your credit score. Mortgage lenders consider the usage on credit cards, which means if you have maxed out your credit card/s, then it’d negatively affect your credit score. Keep the credit card balance between 10% and 15%. If your credit limit is $2000, don’t spend more than $200-$300.

One strategy applied by many to lower the balance on a credit card is consolidating several cards. The process involves too many nitty-gritties, and for that reason, you may have to consult with a financial advisor or a debt consolidation firm. If you don’t want to spend money, and use organic methods, then you can follow some quick ways to improve the credit utilization or balance-to-limit ratio.

Sometimes, cardholders follow both paid and unpaid strategies to optimize their credit scores, which experts also recommend.

Goodwill adjustment

In my previous article, I discussed how lenders can be persuaded to grant a goodwill adjustment. Having a good relation with the lender is a must for it. Sometimes, borrowers have a lukewarm relationship with creditors, still they spare them goodwill adjustment because borrowers agree to the terms provided by the lenders.

This means you can get a goodwill adjustment and late payments, charge-offs, etc can be removed from your credit report without having a cozy relationship with the creditor. All you need to do is write a goodwill letter to original creditors, requesting them to remove negative items from the credit report.

Explain your situation in the letter, the reasons for the occurrence of the negative items, and inform them that you are applying for a mortgage loan. They may forgive you with or without some conditions.

Convince mortgage lender

If a mortgage lender refuses a loan to you because of your not-so-impressive credit report, that’s because he feels you won’t be able to repay it. If you can assure him that you can pay off the money that you are borrowing, and your credit score dropped because of circumstances, then you might be able to get the loan.

What do you think of the ways described here to secure a mortgage loan? Do you have any suggestion that you would like to share with us? Feel free to mail me.

The Advantages of Car Title Loans Over Bank Loans

Posted on by
Reply

A lot of times, emergency situations do not happen in times where substantial amounts of cash are present. In fact, it often occur a couple of days before payday and when there’s nothing left in one’s savings account.

It is a good thing though that those who encounter small emergencies can always turn to car title loans. The said loans are very flexible and those who need instant cash can obtain amounts that are under USD 500. They can also obtain higher amounts, given that they have the financial capacity to repay them.

The Practical Side of Car Title Loans

Such move is a practical thing to do because getting several payday loans might make things even worse. While conventional loans that are provided by banks are everybody’s preferred option, the benefits of car title loans Orange County and other similar choices should never be neglected by those who are in tough financial spots.

Applying for car title loans enables individuals to fully utilize the equity of their vehicle. On the other hand, potential borrowers should make sure that the car that they will use is fully paid off. Otherwise, they might flank the application because some lending companies such as title loans Orange County specify them in their requirements.

The Convenience of Car Title Loans

While some lending companies allow their clients to use cars that are not fully paid off, such stipulation may be risky. For instance, what would they do if unwanted circumstances prevent them from sending loan payments? This circumstance may translate to more serious financial difficulties.

Contrary to many beliefs, qualifying for car title loans is not time-consuming and complicated. Borrowers simply need to submit the necessary documents and wait for the feedback of the personnel of car title loans.

They only need to submit ownership documents, social security details, certificates of employment, and paperwork that state the source of income. Many lending companies do not require their borrowers to work full-time, as such; availing car title loans can be a walk in the park for some.

Conclusion

In the end, it can be concluded that compared to conventional loans that are offered by banks, car title loans are more convenient and practical. With the latter, borrowers do not have to undergo scrupulous credit history checks and submit several documents.

Due to the abovementioned advantages, individuals who need to obtain emergency funding should not hesitate to avail them. This is because doing so can be one of the best things that they can do in times of financial struggles.

Getting A Boat Loan When You Have Bad Credit Ratings

Posted on by

Having a boat today is usually considered a luxury. It is something that is used mostly for enjoying, since it cannot be used in commuting, because there are not a lot of people who live across some water from their work. But for people who are living close to water, like for most people in Australia, for example, or New Zealand, and such states, owning a boat is something that will bring great personal pleasure, and have better effect on a person than having a car, for example. Just imagine being able to go out to sea for a week, having a rest from everything, including the city pressure, the polluted air of civilization and everything that could have negative effects on your health.

However, owning a boat is not a small investment. It can be very expensive, and an averagely paid employee can go through a lot of trouble in trying to acquire a new boat. He must save money for a long period of time, in order to save enough to buy a boat, and there is a possibility that he will never save enough. The problem is that the average income provides for a little more than the basic needs of a man working for it, and very little is left every month to save for buying something large, like a boat, and that is why some people have a lifelong dream to own a boat, and usually they buy it in their sixties.

If you feel like you won’t be able to save enough money for a long time, and you want to have a boat, there are options you can turn to, like boat financing. Many financial institutions offer the possibilities of a loan to get the money needed now, and repay it during a period of time, in small regular payments. Various loan companies even have special departments that deal specifically with boat loaning. They are in touch with boat dealerships, and have many offers for buying a boat that you may otherwise never get.

In order to be provided with a loan, you have to somehow prove to the loan company that you will be able to repay that loan. This is done, usually, by showing the “credit file” to the potential lender. The credit file is, basically, the dossier of your previous debts, and shows how you managed to deal with them. If you have repaid all your debts in time, then you will have a good “credit rating” and you will signal the loan company that you can be trusted. Also, the size of your monthly income, and its regularity, also provide the terms for getting trust from a loan company.

The problems may begin if your credit rating is not as good and not as desirable for the loan company. If this happens, do not despair, as there are still options that you can take. Basically, they are all in a group that is called “2nd chance loans”. The financial institutions provide these types of loans as they realize that the boat industry is in constant growth, and more and more people need to buy a boat these days. It is also a possibility for them to get new profits, even though the risk is great. But, in today’s world they have to risk it, as there are not many people who are financially stable.

A person who wants to take this kind of loan has to undergo a very thorough assessment of his financial situation. Since their incomes and financial security is not good enough, they will have to provide some kind of security for the loan. When taking a boat loan, the boat is usually considered the security. Security for the loan is an object which functions as a cover, if the borrower will not be able to repay the money. When the borrower defaults, the boat is taken as the repayment of the loan. Its value is decided, and that amount of money is taken down from the loan. If the value of the boat is not enough to cover the expenses of the loan, the loaning company is able to sue the borrower. It should also be noted that the interest rate for these kinds of loans is higher, since the companies operate at a greater risk, and need it to somehow pay off.

With all this in mind, the person that wants to obtain a loan has to thoroughly evaluate his possibilities for obtaining a loan, because they may later regret it very much. The only advice is to be realistic. If you really want to have a boat, you will definitely have to forfeit some other daily or monthly luxurious activities in order to acquire one this way. If you are really up to it, start browsing for second chance loans with different loan companies, and see what they have to offer. You can do so over the internet, as well, and there are websites which have loan calculators which will tell you exactly how much money monthly do you have to give up in order to have that nice boat you always wanted.

4 Factors That Will Increase Your Chances of Getting a Car Loan

Posted on by

Are you looking to buy a new or second hand car? Don’t have enough cash? Then you are most likely looking at other ways to finance your purchase such as a car loan. The following tips are basically key elements that will help you get approved for car finance, these elements are not isolated from each other, they all pay a role in the overall formula:

Deposit

There more money you put down as a deposit, the less you will have to borrow and the less you will have to pay back. If you can afford 25% of the value of your vehicle, your chances of being approved for car finance are significantly high. Needless to say it will also depend if you are buying a new or second hand vehicle and what the resale value of that car might be.

Credit Rating

Your credit rating is probably going to be the most important piece of information that lenders will look at which will help them determine whether you are eligible for a car loan or not. In the UK your credit score goes from 0 to 1000 and falls into the following categories:

Very poor: 0 – 560

Poor: 561 – 720

Fair: 721 – 880

Good: 881 – 960

Excellent: 961 – 999

There are many factors which help determine your credit score, such as if you are on the electoral roll, if you have lived at a permanent address for more than 3 years, if you have any outstanding debts or defaulted on any payments, how frequently you have applied for loans and if you have been rejected or not, and many others. Generally speaking the more stable you are financially, and more credit card bills or loans that you pay off in time will help boost your credit rating.

Amount Borrowed

The amount borrowed is of course one of the main factors which can make or break your application for a car loan. It isn’t as straightforward as it seems, it’s not just a case of ‘the less borrow, the more likely you will get approved’. Car finance brokers are looking to make money and profits, so they aren’t particularly focused on lending small amounts and charging low interest rates. Ideally they would like to be in a position where they can lend large amounts as this will generate more profits for them!

There are other elements that they will take into account when looking to finance your car, such as your credit rating and history, the amount you choose to borrow, how much deposit can you provide, the time-span you plan to pay it back in, and needless to say which car you choose to purchase. All of these elements play a role in their risk and profitability formulas that lenders will use to determine if you are eligible or not.

If you’re looking to borrow larger amounts, you must be in a position to provide a decent deposit (over 10% of vehicle cost), have a clean credit history and be purchasing a car which offers good re-sale commerciality. Lenders look into the re-sale value of a vehicle in case they have to repossess the car and sell it at auctions or elsewhere to gain their money back.

Value of the Car

The value of the car you plan on purchasing will have a significant importance on the outcome of your finance application. Lenders usually appreciate capital protection when lending money to someone who plans to buy goods such as cars, as it guarantees them some security in case you fail to make the repayments.

They don’t just take into account the value of your desired vehicle, needless to say, the other factors such as your initial deposit, credit history and monthly repayments will play a big role in determining your outcome.

For example, if you are looking to buy a brand new Mini Cooper, which has a strong market value and is popular by demand, and you have a 25% deposit, the chances of getting car finance will be pretty good. On the flipside, if you are looking to buy a second hand, unpopular car model (lets say a Hyundai Atos for example), and you have less than 10% deposit, lenders aren’t going to be so willing to finance that purchase as it offers them less security.

Personal Loan Finally Approved: Things You Should Not Do

Posted on by

Finally! Your loan has been approved! You can now pay for the remaining balance of your children’s tuition fees, plan a vacation, start a business or renovate a room in your house!

Getting a personal loan is one way to get the cash you need. Just remember that you will still need to pay for the loan eventually. Yes, at a later date. But that date will come. So you should keep within your budget. No sudden expenses. No unplanned shopping or trips. Otherwise, that loan will prove more harmful than handy.

Here are a few things you should not do when you finally have your application for a personal loan approved.

Late Payment

Never miss out on the date of payment. Each late payment can affect your credit score and destroy your reputation with the credit unions and banks. Plus, late payments lead to penalties. If you maintain your good credit standing, with no late payments to mar your payment record, you may be eligible for additional loans.

Of course, this is only good news if you can afford to pay for any more of the loans you plan on applying for. If you are, then just check on the terms that you and your loan agent signed on until you get to the part where it tells you what to do, and what to submit, in order to qualify for multiple loans.

Loan agents are there to remind you and help you make your monthly or semi-annual or annul payments. So expect that questions involving your credibility as a borrower will be asked. Be honest with your answers. You may want to overstate the true state of your finances or sources of income, just to get those loan applications approved. But you defaulting on your personal loan is bad news.

So when you come in and meet your loan agent, with all the calculations and projections ready, if your loan agent approves, then go for it. But if your agent tells you it’s risky and that you may end up with late payments, then listen and adjust.

Never Overextend

This is a big no-no with credit and debit cards. Remember that your approved personal loan is money that you need to set aside for something else. It’s not extra cash. It’s already been alloted for an emergency, for laptop repair costs, for sudden medical bills.

So, if having access to it will test and strain your willpower, tempting you to buy things you don’t need or go for trips that aren’t really part of your budget, or shop like there’s no tomorrow, then one way to keep that cash safe is to limit your access to it.

Pay for the bills as soon as you get the cash. That way, the money will be out of your hands and you no longer have to worry whether you’ll end up spending it on a few shiny long irons or on shoes you don’t need or on that nifty gadget you’ve always had your heart set on but couldn’t imagine buying until now because it costs as much as a human kidney in some parts of the world.

If that doesn’t work, ask a friend—one that you really, really trust—to hold on to the money until it’s time to pay your bills. Of course, this will only work if your friend is someone who won’t easily give in to you at the first moment you try to get your hands on the cash. Choose this friend wisely.

Or, you can create an entirely different plan. Just make sure it works. Not wasting the cash you get from your personal loan is smart. Otherwise, you may just find yourself in debt, with a loan you’ll have no chance to pay for.

About the Author:

This article is prepared by Compare Hero for Finance Career Education. Compare Hero is Malaysia’s leading credit card comparison website. Compare a broad range of financial products, from credit cards to personal loan plans.