Archive for November, 2013

Getting To Know Microfinance Better

Wednesday, November 27th, 2013

Microfinance BetterA mechanism that was started in the developing countries a few years back to help the poor working people is microfinance. There are numerous microfinance institutions that have come into existence and these have been offering tremendous help to the people who want to start up their own enterprises. Through the microcredit loans that people receive they are able to set up their businesses and become independent.

Microfinance was started because facilities such as banks and other money lending companies could not be accessed by the poor working people. Banks and other financial institutions have certain strict requirements which the people having low incomes were not able to fulfill. For instance, the institutions would lend loans only to people who have a source of stable income. But most of the poor people do not have a stable income because they are usually self employed.

An important component of microfinance is microcredit. Through the microcredit facility small scale entrepreneurs are able to improve their businesses and augment their profits considerably.

Microfinance has actually become an effective strategy for combating poverty. Poor people are protected against the high rates of interests that are charged by the informal financial institutions.
Another advantage of microfinance is that it has empowered women to a great extent. Microfinance ensures that there is an equal access and distribution of finances and other resources. Many women have acquired the microcredit loans and have become self sufficient. The status of women has also improved at a tremendous pace from the moment microfinance mechanism was introduced in the developing countries.

Poor people are getting the opportunity of increasing their assets because they are able to build or improve their home, acquire properties, purchase poultry and livestock. People have actually become well equipped and can face any kind of unpleasant circumstances confidently with the help of microfinance.

What happens to the student loan if the borrower dies?

Saturday, November 16th, 2013

student loanIf you act as a co -signer on a loan, you are responsible for making loan recompenses when the borrower is not capable to do so. If the borrower dies , you may have to continue making payments , although the phrases of the loan accord will determine whether there is any continuing obligations on behalf of the co -signer . Talk to a lawyer if you need legal advice about your rights and obligations as a cosigner. Co -signers; When you co – sign a loan, tells the lender that you will pay for the loan if the borrower fails to make payments. You also agree to have the loan that appears on your credit report, but usually does not get to use the product or the benefits of the loan. Every time I co – sign a loan, it is important that you read the terms of the background. The loan certificates should address what occurs in the event that the borrower or guarantor dies. In a few situations, for instance, the loan agreement may decide that the guarantor is liable to pay the remaining amount in case of death of the lender. In other situations, such as student loans, a creditor may agree to meet the loan in case of death of the borrower, while others do not.

What you should know before signing or guaranteeing a loan

The credit is a legal contract. While each contract is different, they all contain specific requirements for the amounts payable, interest rates, due dates and penalties for late payments. Commonly , credit contracts require that you either own , pay taxes and maintain insurance on an item (such as a car or home ) that may have been used to obtain a secured loan. By meeting the exact terms of the account, adds value to your credit history. Each month , lenders report to the credit reporting companies on account balances , accounts that were paid on time , accounts that were paid late and the bills that were not paid at all. If you fall behind on your payments, your credit will suffer, probably pay late fees and in the future will cost much more to get new credit. Even if you catch up on your payments, late payments continue inquiring as part of your credit history. The lender also has the right to sell the collateral if you default on the loan payments. In some cases, sell the collateral does not generate enough money to pay your debt. In this instance, you may be required to continue paying the loan even if you do not own the article.

Tips for a Profitable Investment in Real Estate

Thursday, November 7th, 2013

Investment in Real EstateInvesting in Real Estate can be a lucrative business in today’s world. People are now interested in buying and selling of their homes and make profits. To build a new house, renovate an old one and selling them for a very high price has become a great way to earn and have a lavish life. There are professionals who help such investors meet their needs.

Following are the ways for a safe investment in a real estate business.
Though the real estate market is undergoing certain crisis in recent times, prices are falling, but in the long run, investment in real estate market surely provides a handsome profit over the years. Before investing in this market you should always make the maximum utilization of your time to look for a good deal first and then move forward in buying the plot of land. The only way to make huge profits in a real estate business is to examine the market conditions and to learn the way in which it operates which requires a lot of patience and hard work. You must know the condition in which the house is, its location, neighborhood, whether it has any tenants etc. Everything must be clear to you. There are many tax breaks that are in favor of real estate investors.

The smart way to begin investment in real estate is to make small investments. You can start with buying a house at a very low price which is below the market value. You can renovate it, live in it for a few while and then sell it off at a very high price. You must also calculate the total cost of investing and renovating in a house and also the amount of money that you expect to get from its sale. By doing this you can compare among the different options.

How To Manage Your Finances As A New Parent

Friday, November 1st, 2013

new parent financeThis is a very delicate phase of life where you get a taste of things differently. It is in this phase that you need to start planning about the future, not only yours but your partners as well as your new child’s. Emotions are at a peak at this time but keeping your mind on track and not wasting any moment of it is the best management ever. It is important to know that the whole responsibility is on your shoulders now and with the coming of this new born comes a whole new set of responsibilities and financial crisis. With the increase in the number of members in your family it is but evident that the finances are expected to go up. The child’s food, health, clothing and education all need finances to run smoothly with the hope for a bright future.

The most important thing is planning. This can only happen if you schedule your budget by finding out the expenses on food, wipes, diapers, formula, clothes and other things of importance every month. According to the schedule a fiscal budget chart can be prepared. After all the expenses are fulfilled it’s important to know how much money you are being able to save every month. Even this saving will be of use as the child gets older.

Insurance at this stage of your life plays a very important role. Life insurance for both, the father- if he’s the sole breadwinner of the family and the mother are very important. It covers the cost and gives financial relief in case a mishap happens after birth. Health insurance should be done previously so that maximum benefit can be taken before and after the pregnancy. Insurance of the child secures his/ her future too.