Archive September 6, 2018

Getting started is the hardest thing while saving money. It is possible but difficult to plan out simple ways to save money and pursue your financial goals by using your savings. Here are some of the simple and realistic ways to save your money.

Track your expenses

Figuring out how much you spend would be the first step in saving money. You can count every penny you spend by keeping track of all your expenses such as snack, newspaper and every coffee you buy.

Do organize the numbers by different categories like grocery, mortgage and gas once you have the data and make the total of each amount. You can easily break down your spending if you are able to filter your statements in online banking. Hence you can make use of your bank or credit card statements to easily save money.

Create a budget

Now begin to organize your recorded expenses into a budget that is workable once you have an idea of what you had spent in a month. To be able to plan your spending and limit the overspending, a measurement of your expenses up to your income should be outlined by your budget. Make sure to consider the expenses that take place regularly but not per month, in addition to your monthly expenses. One of the Examples is car maintenance.

Start saving small

Now it’s time to create and add a savings category once you have made a budget. As a part of savings try to put 10% to 15% of your income to save money.

Also, it might be a time to cut back if you cannot save money that much due to your high expenses. To make it possible you must identify some non-essential and unnecessary things on which you can spend less such as dining out and entertainment.

Try to choose something for savings

Setting a goal is one of the best ways to save money. Start thinking for what you want to save – be it a vacation or a down payment for a house. Next figure out how long it will take you to save for such a thing.

Let’s see some examples of long-term goals – Child’s education, down payment for home and your retirement.

Examples for short-term goals – Vacation, down payment for a car and emergency fund to cover living expenses.

You can also consider putting money into an investment account if you are saving money for a child’s education or retirement.

Prioritize the goals

Goals will be the next thing that will have the biggest impact on how you will save money. Also, make sure that you remember the long-term goals. You will have a clear idea of where to start saving if you learn to prioritize the goals.

You could also start putting away the money for a new car, if in near future you are going to need to replace your old car. Hence prioritizing the goals are very important.

Automatically make the saving

The automated transfers between checking and savings accounts are offered by almost all the banks. You can also split your direct deposit between your savings and your checking account or you can also choose how much, when and where to transfer money to.

As you don’t have to think about automated transfers, they are always a great way to save money. The automated transfer also reduces the temptation of spending the money.

See your savings grow

It will help you stick with your personal plans for savings as well as identify and fix the problems quickly if you keep checking your progress every month. In order to save more money and achieve your goals very fast, these simple ways of saving money will help you and even inspire you a lot.

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Guarantor Loans

We need money in our life to get through the day or the whole month. These are the basic necessities of our life without which we cannot live. For example, food, water, travelling to work, electricity bills, etc. We have a monthly budget planned for expenses like this so that you can manage your finances. However, there comes a time where you are in need of extra money. At times like this, you cannot make use of your monthly budget as it may disturb your daily expenses. So instead you can opt for a bad credit finance.

The need for extra money can be dues to any unfortunate event like a ceiling leak, house repairs or your car needing a little tweak. Going for long term loans which consist of a very high amount doesn’t make sense as you would be buying extra money for a little expense, which you would be paying for years. As the money required for this is not much you can borrow a small loan to take care of these expenses.

These loans are also known as bad credit loans or small unsecured loans.

Small Loan or a Bad Credit Finance?

There is no difference between a small loan and a bad credit finance.

Bad credit finance is nothing but a small loan which you can borrow if you have a poor credit rating. Most People in the UK have a bad credit history which makes it difficult for them to borrow money. But now lenders have started giving out credit to people even if they have a bad credit score.

What is a Bad Credit? Why Do I Have it?

A bad credit score is a score given to you on the basis of your past finance transaction and how you have managed it in the past. There are many credit agency who can help you to know your credit score like Experian, and Equifax.

If you have a poor credit score it means that you have failed to manage your finance. Apart from this, there are many reasons why you may have a bad credit score like –

• If you have missed your loan repayments in the past
• The repayment amount is not paid in full
• If you have a huge debt
• Bankruptcy
• If your identity has been used for any fraud
• And your permanent address is not registered on the electoral roll

If you have a bad credit score you should try to improve it by paying your outstanding debts, making repayments on time, and updating your address on the electoral roll. However, it is a very long process, so if you are in need of some extra cash you could go for a bad credit finance instead.

Who Are Eligible to Get a Bad Credit Finance?

Though lenders are providing you with a bad credit finance despite your poor credit history, there are certain criteria that you need to fit in. So be sure that you fit in the below description in order to be eligible for this loan –

• You must be 18 years in age or above
• A UK resident for more than 6 months
• You must have an active bank account and a phone number

Is this Finance Option Expensive?

When it comes to paying back a bad credit finance it can be expensive. Although it depends on your credit score. If you have a decent credit score you could be charged a low interest rate compared to the person who has a very bad credit score.

These finance options are expensive because of the risk the lenders carry. They do not have any security against the money you are borrowing from them. If you miss any repayments of the loan and don’t pay on time they are the ones who are going to lose their money. This is the main reason due to which the lenders are charging higher interest rates compared to the interest rates charged on any other secured loans.

Conclusion:

So if you are looking for a quick small loan and have a bad credit you can borrow a bad credit finance. However, you should also check if you can get credit in another form like from friends or family before applying for this loan.