Personal Loan Low Interest

How to Improve Your Financial Picture by Reducing Your Debts and Lowering Your Interest Rates

Improving your financial picture is not only something that is valuable to corporations but even more so to individuals. Using financial management to reduce your debts and to lower your interest rates is a tactic that will only save you money in the long run. Mismanaged money can cause a lot of headaches and also cause you and your family to suffer.Generally these tools are not taught in schools so it is up to you to educate yourself and manage your finances more effectively, so you can improve your financial picture. We will cover some of the guiding principles necessary to assist you in your quest of financial prosperity.

Starting with your personal financial health, these maxims dictate that you need to earn more than you spend in order to stay afloat. In achieving this you need to either decrease your spending or increase your earnings or both. You can control your spending by applying a little self-discipline as well as through applying for lower interest credit cards or not paying for those higher interest rates.
This means actively monitoring your debts and paying your bills on time. As far as increasing your earnings, you can get a second job, work more hours at your current one or put your money in interest earning assets like money mutual, IRA or even a savings account. By doing this you make your money work for you. Make sure you have an emergency fund tucked away somewhere also because you never know when life may throw a curveball at you.

You must also take into consideration your assets and liabilities, just like every business will have a balance register sheet so should you. Your whole life you will be acquiring assets for your family as well as yourself. Most of these assets will not be liquid and even require you to pay monthly expenses. This could be your mortgage payment, your car or truck payment with insurance and other investments if you have them.

Not to mention all the liabilities that you will incur throughout your life for various reasons, while you may have varied reasons for incurring debt it is important that your assets are going to have the resources to pay for your liabilities.

Understanding and lowering your debt is crucial to improving your financial picture and portfolio. Debt can sometimes and unfortunately be inevitable. You will not be able to escape it, because there are times in your life that you’ll need to rely on it for survival. This could be due to an emergency like a recent job loss, medical bills or simply because you want to buy something that at the time you just can’t afford.

When you understand that debt comes with the price of interest and this interest is a liability that you’ll have to pay every month. If you have great debt you will have a lot of interest to pay as well. So to improve your financial picture it is wise to search out ways to either lower your interest charges or lower your debt or preferably both.

A Guide To Help With Managing Finances in 2012

As we shift our focus to 2012, we would like to bring in our new year with a lot of smiles and happiness. But one cannot deny that most people are not able to do so due to the excess debt baggage that are bearing them down. The holiday season last December may have witnessed a spike but the real picture came during the lull period when there was a huge dip in demand. Even on the Christmas week, the sales were not as promising as they were three years ago. The retailers had to invest massive amount from their profits into marketing and do more price-cuts to garner more sales.

It is a fact that we are living in stressful economic times. Consumer spending constitutes 70 percent of the financial growth of the economy and when this function is weak, it says the times ahead are not exactly smooth. The real reason for these woes is callous borrowing by people during the boom time. People had borrowed for luxuries, travel, and mortgage at that time, and are now finding it tough to repay them. More so, they find it even more difficult to get new loans in these trying times. The figures too indicate the aforementioned thing, consumer debt in October 2011 was the highest in two years, which simply means even now people are buying on credit rather than income, because they do not have enough money. The savings rate too has been at its lowest in two years, just 3. 5 percent.

The income of an Average American citizen has been the same or marginally high for the last two years now, which in itself is difficult to sustain in times of rising costs and standard of living. The job growth has not been encouraging, whatever growth has been witnessed; they have been apparent only in the low-paying sectors like hospitality and retail.

It does not mean that consumer spending is going to be at its lowest in 2012 but there are definitely going to be alarming times. The only way to come out of the debt trap is financial discipline. For instance, take the example of Jason Fields, a 29 year old marketing executive who was laid off in 2008. Instead of hunting for jobs, he started his own business and today, he is married and living an economically stable life.

Jason says, “Well, I have a job too now but one of the reasons I was able to pay off my debts was due to smart spending and saving habits. I guess most Americans are doing the same, spending cautiously and saving more. I do not buy things blindly; I log on to the net and find out cheap, discounted deals. Also I do not use credit cards as I used to, I buy stuff only when I need it. For instance, I wanted to go on a honeymoon with my wife, and I used it But other than that, I am pretty sure of using credit only when I require it. No more casual spending for me.” His wife Marie says, ‘Also, if we do not need a credit card which has good benefits, we buy them only at the introductory rate and close the account before the APR rises.”Well we can say, Jason has found a good-life partner.

Philipp Mathers, 37 and his wife Jessica 31 have remained unfazed in the debt crisis. Both of them attribute this to their inherent habit of careful spending and disciplined saving. Philipp, a soft-skills trainer says, “If we want to take out a trip, we dig out our savings. Plus we have invested in mutual-funds; we keep a long-term perspective in mind. “ Jessica who is basically a house-wife teaches preschool kids and earns part-time income that contributes to the family. Expecting a baby, she says, ‘Things are not bleak as they seem. We just need to be financially prudent. All of this boils to basic evaluation of how and where your money is going”

As she rightly says, it is in our hands to exercise financial management and take control of our economic destiny in 2012.

Personal Loan Low Interest