Category Archives: Personal Finance

Pros and cons of online banking

online bankingOnline banking is getting more and more popular as the days pass by more so because of the uninterrupted convenience and superfast speed. Also a majority of people today have a continuous access to the World Wide Web from their gadgets like cellular phones, tablets, laptops and personal computers. So if you are planning to start banking online here are a few pros and cons you would like to go through before becoming a fully fledged online bug.

Cons:

Let us start with the disadvantages of net banking. Security threats are the most important setbacks to the online banking systems. In case of any leaks or unsafe website portal you may use to shop online, your bank account number may easily be hijacked and misused. Also, some people are not very tech savvy hence not being able to understand and operate the computer that well to start with this new system. Net banking may seem to have a very lengthy initial phase making people lose interest in it then itself.

Pros:

Moving on to the innumerable advantages of net banking we can say that it is the fastest way and most comfortable way of banking. You can do the required work from the comfort of your home’s sitting chair instead of going out there standing for ages and still as happens in many cases not having the work 100% completed. Another very interesting thing is its accessibility 24*7 unlike the usual banking hours- 10 to 5. It is important to know that leading bank website portals offer advantages to those who manage their accounts online. Things like account aggregation, stock quotes, portfolio managing provisions and rate alerts. These help you to manage your assets more effectively.
Just make sure to be well acquainted with the do’s and don’ts and go ahead with your own net banking account.

Which Debt Solutions Are Most Effective?

When the only light at the end of the tunnel appears to be an oncoming train of financial devastation, debt recovery solutions may seem impossible. With so many apparent options, what is the right thing to do? The answer is easy: What works best in your situation?

While the answer is easy, it’s a process to identify the best method. Because every situation is unique, only you can decide what will pull you out of this desperate situation quickest and without a bank robbery felony charge.

Pay Highest Interest Rates First?

Some people say to start with the highest finance charge when looking to pay down debt. But what if that is your biggest debt that takes the biggest portion of your monthly budget…like your mortgage?

Even with today’s low interest rates, someone could be struggling with a high interest rate mortgage. After all, a homeowner can only refinance when the bank deems them a good risk. If finances have been bad for the past few years, there may have been no chance for refinancing.

The housing market might show signs of recovery today; however, plenty of people still suffer with a mortgage that isn’t commensurate with the value and could never sell it for what they borrowed. Repossession rates have been high.

If you don’t have a high rate mortgage, or any mortgage, you may want to start paying down debt by reducing extraneous spending and paying extra on the highest interest rate loan or credit card. This could save hundreds of pounds over the course of the loan or debt and allows for the payoff to be measured in months rather than years.

If you do have a mortgage that could stand a lower interest rate, paying off high interest credit cards or loans may increase your chances of a bank approving a refinance. It’s a win/win.

Snowball Debt Payments?

If you find yourself in a situation where your most difficult and pressing debt burden is your highest interest rate, such as your mortgage, and there is no way to pay more than you already are, you may want to consider the debt snowball method instead.

If you have a small loan or bill that you just pay a small amount each month, reduce your extra spending money and apply it to that bill. You’ll only free up a small amount once it’s paid off, but that amount can then be applied to the next bill. The concept of debt snowball is that you pay off smaller items first so that budgeted amount can be applied to increasingly bigger bills until you are able to pay large amounts on bigger debt burdens.

Time for Drastic Measures?

When finances are critical and there truly is no way to budge in any direction, it’s time for some serious action. You might find that holding a big yard sale and selling items on Gumtree or similar websites may draw in cash that is desperately needed.

If you live alone you may want to consider renting a room so you can share utility and rent expenses. If the option exists, you might want to consider giving up a costly apartment and rent something cheaper or even move back home with parents or other relatives. During this time, use other debt solution strategies to pay down debt. You can explore various debt solutions at Consolidated Credit.

Don’t Be Afraid to Ask for Help!

Out-of-control finances may seem overwhelming and depressing with no possible solution. Before throwing in the towel, consider asking for help.

Do you know someone who seems to have good money management skills? Does your place of worship offer counselling or other services that you could utilize free of charge? Does your company offer employee assistance?

Take time to seek help. Sometimes all it takes is a new perspective to generate ideas on how to tackle the problem and develop a game plan.