FinanceDogma – Finance, loans, creditcard and mortgages

November 23, 2015

Save for a rainy day

Filed under: Finance — admin @ 1:03 pm

The most basic reason for saving is the old maxim of “putting something away for a rainy day”.

Most people are optimists, and young people particularly so. We believe that nothing unforeseen will go wrong in our lives to cost us large sums of money.

It is good to be optimistic, but it is also good to be realistic! Believe me, by the time you are 30, if not a lot younger, you will know all about the many things that can go wrong and cost you a fortune!

Your car could suffer a serious breakdown the day after its guarantee has expired. Loan interest rates could rise (they frequently do, after people have calculated what they can afford to pay on a certain purchase), resulting in sharply increased repayments. The company you work for could find itself in trouble, and have to retrench some of its staff. Even the civil service could, in a time of serious national distress, find itself unable to pay as many employees as it would like to — meaning that some of them (including maybe you) could find themselves with a reduced bonus or no pay rise, or maybe even no job, at a time when every cent is needed to pay hire purchase or house loan instalments. Or you could suffer a serious injury which keeps you off work for longer than your employer’s insurance is prepared to carry you on full pay.

Have you not seen your parents’ swimming pool develop a crack which needs costly repairs, at the same time as the lawn mower or the washing machine broke down, just when they needed to kit out your younger brother for high school — and all of this happening immediately after the summer holidays which themselves cost an arm and a leg?

If for no other reason, then, save for a rainy day. Because assuredly, that rainy day will come!

December 10, 2013

Royal Mail Announce Stamp Costs

Filed under: Finance — Tags: — admin @ 12:51 pm

According to the Royal Mail, stamp prices are set to rise. As the current UK economy faces uncertain times, coupled both families and businesses struggling to make ends meet, is this really a good time for the Royal Mail to be hiking up their prices? Unfortunately, according to their chief executive, the decision to do so was inevitable.

So what will the new prices be? Well the Royal Mail have announced that prices will rise from the current 46p for 1st class stamps to 60p, and from 36p for 2nd class stamps to 50p. As a result, posting a large letter will increase from 75p for 1st class stamps to 90p and from 58p for 2nd class stamps to 69p. The changes will take effect from April 30th 2012.

With competition increasing, a declining volume of letters being sent and the threat of emails and other electronic messaging services, the decision for the price rise was unavoidable according to the Royal Mail’s Chief Executive, Moya Greene. She explained that in order for the organisation to restore their finances and maintain their universal service, they would need to increase their prices to stay competitive.

The Government back the Royal Mail’s decision, as they look to protect the UK institution. The decision for the increase follows the regulator Ofcom’s decision to allow the Royal Mail freedom to set their own prices.

Whilst the price increases are still relatively cheap in comparison with the rest of Europe, for example after the price rise, 2nd class stamps will still be the cheapest and 1st class stamps will be the 5th cheapest across Europe, families, businesses and consumer groups are still outraged. Consumer groups believe that the Royal Mail couldn’t simply rely on price rises to turn around its fortunes.

But what about the public and businesses who rely on the Royal Mail’s service? Well unfortunately, it’s yet another price rise that is increasing the financial burden on many up and down the UK. When you consider the sheer price hike that families have had to endure, such as fuel, bills, as well as the price of food, then you can see why many people aren’t exactly over the moon at this decision.

However, it appears that the Royal Mail have acknowledged the difficulties that many UK families may be suffering at the present time, which is why they’ve developed a ‘Christmas scheme’. This will allow families on low incomes, those on pension credits as well as those seeking employment and support allowance or incapacity benefits to be able to buy up to three books of 12 stamps at the 2011 prices.

Given the current state of the UK economy it appears this price rise will come at the wrong time for many in the UK. Whilst for the Royal Mail it isn’t serving their public image any good, they appear to have their hands tied as they too look to survive these uncertain economic times.

May 22, 2013

A Guide to Secured Loans

Filed under: Finance — Tags: — admin @ 11:49 am

A Secured Loan is any loan that requires the borrower to present the lender with some type of collateral or “security”. With Secured Loans, the security will be the borrower’s property, whether it is mortgaged, remortgaged or fully owned. Loans secured against a property that has already been mortgaged are known as “second charges”, and loans secured against a property fully owned without an existing prior mortgage are deemed as “first charges”.

Secured Loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount.

Secured Home Owner Loans are available in varying amounts with a variety of different purposes. The amount available usually ranges from £5,000 to over £75,000. When you receive a Secured Loan, the repayments are made monthly over a period agreed in the beginning between you and your lender, which is generally between three years and twenty five years. There can even be a rebate for early settlement of your loan, depending on your criteria.

Which Loan Should I Choose?

Usually, Secured Loans are easier to obtain than unsecured loans. Because the lender has the ability to use your home as security, they will regard a secured loan as “lower risk”, if ever the inability to make repayment. In addition, those who are self-employed, have adverse credit, ccj’s, or recently changed jobs can easily take out a loan. A Secured Loan offers you the ability to borrow larger amounts or request a longer repayment period.

An Unsecured Loan is called such because the lender doesn’t require the security of your home for the loan. You will usually be offered an interest rate or APR based upon your circumstances and the amount you would like to borrow. Depending on the lender, you may not be able to use your Unsecured Loan for certain purposes such as business or speculative reasons. Typically, with an unsecured loan you may not be offered as large an amount as a Secured Loan, and the APR may be higher. Simply ask one of our friendly lending representatives the conditions of your Unsecured Loan

March 5, 2013

Overview Of Financial Management Services

Filed under: Finance — Tags: — admin @ 4:51 pm

Most of the people are showing much interest to understand finance nowadays. Since finance become the most essential one and then wherever you go, whatever you do always you must have the art of financial management. Making of money is become as an evolution of art then more and more people are started to join the race in the best way.  There is also chance for you to revolve as an efficient money maker by understanding concepts of finance. Individuals, who like to achieve their goal in financial market, should be well aware of new trends of the stock market and financial values.

Apart from knowing the performance and growth of various stocks, understanding the volatility of stock market, knowing the cost of each stock is the mandatory one. You should also know the various financial terms that are being associated with the financial transactions so that you can be very clear with the transaction processes. If you need the help from the online stock broker or friend to know some details about the stock trends and stock values then you can get some guidance from them without any hesitation.

The financial management processes, their terms and their exact meanings can be understands clearly by reading various financial concepts. The most important one in the stock market is that the investor’s should not be advisable to get discouraged for all the times. Individual with the knowledge of financial trading and stock exchange can achieve his goal in share market very easily.

February 21, 2013

Role of Financial Advisor In Business

Filed under: Finance — Tags: — admin @ 4:52 pm

Once you are wondering much about how to manage your various financial needs? No problem getting help from any of the financial advisor would solve any kind of financial worries in your life. There are many financial advisors being available in this global world to assist the people who are in need of some financial help. You can find many businessmen will feel difficulty to achieve gain in the stock market due to lack of some assistance from the financial advisor. If you are business men and you plan to upgrade your business then you surely need various kinds of financial helps either from bank or from any of the high standard finance company.

Identifying the best financial group to get assistance for them for your business is the better idea for any businessmen. There are many world famous finance group being found around the world where the businessmen should identify the right one of their own.  The finance groups should never hesitate to assist both the businessmen and families. Before approaching any of the finance company it is better to do some researches on such finance group to check whether it can be trustable one for all your business needs.

Nowadays owing to the competitiveness between most of the finance industry in market you can find many financial services provide lot services and offers to their customers to attract the new ones too. Searching for the perfect financial group, the internet can be the right source. With the help of online you can get lot of financial groups which provides various services with great offers.

December 30, 2012

SBA Loan

Filed under: Finance — Tags: — admin @ 7:15 pm

The U.S. Small Business Administration was created by congress in 1953 to encourage the growth of commerce and aid in the forming of new businesses enterprises and to help with growth of existing enterprises. It acts in a way as a liason between congress and small businesses

The SBA loan program is a program that helps guarantee up to 85% of the loan amount. You still get the loan through the bank, only you have the SBA as a guarantor.. You might try to go to the bank and get a loan yourself first, and if you are turned down, ask if they would reconsider your request under the SBA loan guarantee program.

You may want to look into sba preferred and certified lending institutions.

You can approach the sba at any size or stage of small business development.

The SBA may take up to 10 days to process your application. Some of the main factors include collateral. If you don’t have colloateral, you won’t necessarily be rejected, but collateral is a very important factor in all loans.

To be eligible for the sba loan program a business must be operated for profit and must not exceed certain company size standards.

You can get a lot of business information at the local SBxA office and may even be able to find mentors with ‘SCORE’ – The Service Corps of Retired Executives which provides free counseling to small business owners.

September 6, 2012

Secured Loans

Filed under: Finance — Tags: — admin @ 4:53 pm

The concept of a secured loan is a method whereby someone borrows money with a backup asset and should they default on their commitment, they will be able to then pay back in kind – for instance, this might be a car or property in this regard. Thus the asset can act as a collateral device for repayment security. The concept of secured debt is in semantic opposition to that of unsecured debt whereby there is not an actual asset to act as collateral against.

In the circumstances that the borrower would default with their payment contract, then the creditor would be able to take over ownership of that which was secured against. Furthermore, they might then sell the asset in order to gain remuneration to realise the cash basis of it. For instance, in the case of a house that was used in the sense of a secure loan, that house could be claimed, sold on and then the cash used to repay the debt. In the instance of course that the asset would be sold for more than the actual required amount, this could potentially provide a surplus.


In regards to the actual intention for taking out the secured loan, the purposes of it could first of all include trying to create more cash flow and credit in order to relieve existing payment requirements. Furthermore, this type of loan might be regarded as a more secure type than of course an unsecured loan. However, one aspect of this situation that would need to be taken into account is that the asset that is at stake might naturally increase or decrease in value. In the sense of a house that is used for mortgage purposes; this situation would be known as ‘negative equity’.

By having something that is secured the rates might perhaps be better than those in the situation of an unsecured loan – whereby in that instance there would not necessarily be a provision for the provider in the event that the borrower was unable to maintain their commitment – hence in that situation the lender might end up without any prospect of regaining their funds in the event of bankruptcy. Thus typically secured loans will be the clear preference normally for those who are seeking to lend out credit for those seeking loans.

Whilst having already mentioned about mortgages, terminology which is involved in that situation could include ‘nonrecourse’ whereby the house would be the only asset that could be used as collateral and the lender would have no further recourse after trying to sell it. A foreclosure is whereby property that has been mortgaged is sold in order to service the defaulted debt. Furthermore a ‘repossession’ is a situation whereby property for instance a car is taken by the creditor in order to claim back the money that was owed in the form of a secured asset again non-payment of that loan. This might be able to be done under a court order for instance.

September 3, 2012

Effective Tips for Budgeting Each Month

Filed under: Finance — admin @ 1:17 pm

Nowadays, it’s essential to budget. It doesn’t matter what type of money you make, the economy makes it hard to save money. It is a good idea though to have some sort of budget to ensure you have a little bit of a stash in the case something happens. By having a budget set in place you’ll be able to plan for long term expenses as opposed to just seeing expenses for the current week. Here are a few tips to help you out.

What Method Will You Choose?

When it comes to budgeting, there are a lot of methods that can benefit you. There are a number of methods you can do on your own, but there are some people that choose to bring in professional help, and in some cases this gets pricey. Keep in mind that no matter what particular method you choose you’ll want to make the most of it. Make it a method that’s going to match your lifestyle, and something as simple as some paper and a binder might be all you need. You can use software on your computer such as Excel which is great for budgeting.

Determine Your Bills

Map out what bills you have from month to month. Determine what you have as far as income coming in each month and make sure that your income can cover your bills. Take each of your bills and write them down on a piece of paper or put them in an Excel spreadsheet. Keep in mind these bills do not include food. Only list bills that are a basic necessity each month such as your housing or mortgage payment and the utility bill. If you have student loans, this becomes a necessity bill as well. Your gym membership is not considered a necessity bill; even if you have been going religiously.

Now you can list out your food bill and your gas expense. You’ll also want to list out any items your home needs such as laundry soap and garbage bags. Try and be honest or else you won’t really do yourself any good.

Allocate Income

Think about what you make each month or what type of money you are going to expect for the current month. If you don’t know an exact amount, try to estimate. Are you going to have enough to cover y your bills? Do your checks help cover you for the month or are you short? If so, you might want to re-evaluate your bills and see where you can downgrade. You don’t need a gym membership or the premium channels on your cable.

When it comes to budgeting, especially in today’s economy, it’s important to make sure you can at least pay for the necessity expenses. It can be hard to part with some of the luxuries, but unless you plan on getting a second income stream coming in, downgrading is going to have to happen until you cna get back on your feet.

Tip – Learn how to claim PPI back by visiting howtoclaimppiback.com.

February 25, 2011

Save money by walking instead of driving

Filed under: Finance — Tags: — admin @ 1:17 pm

Ok, so the title might be a bit extreme at first glance… after all, cars are for driving, right? Who really has time to walk everywhere, or even ride a bike nowadays? In an age where we race to and fro, from business meeting to soccer game and back again, it can be hard to tell whether we are coming or going. To people who live very busy lives, or to people who are used to driving absolutely everywhere, it might seem absurd that you could find the time or the energy to actually walk anywhere… much less to do it everyday!

Well, as right as you may be to say that the concept of leaving the car behind full-time is a bit outlandish, there is another side to the coin that deserves a proper in-depth look… if you are not really ready to sell your car and ride your bike to work every single day, why not come up with a few compromises?

If you live far away from your workplace, then you might have no other option but to drive to work. However, what about lunch time? Odds are good that there are plenty of good places to eat within easy walking distance of your workplace, especially if you work in town! Why not toss the keys on the desk and take a relaxing walk to your favorite lunch spot? This will save you some money on gas in the long run, but it can also relax you and give you some time to rejuvenate your senses. Driving all the time is actually quite stressful, whereas walking can help you to take a deep breath and just be by yourself for a little while. No red lights, no honking horns… and best of all, none of that $4-per-gallon-gas getting sucked into your engine and burning to fumes!

Now, if you live close to your workplace, and if your neighborhood is a pretty safe one, it might actually be very beneficial to ride a bike or walk to work instead of taking the car. Over time, this can save you a lot of money in fuel. Even if you only walk or ride a bike a few days a week, this will build up over time to really cut down on your vehicle‘s operating costs.

Whether you walk to work, or just up the road to the convenient store, walking is as good for your pocket-book as it is for your well-being! So if you find yourself about to set out on a quick little jaunt on a nice summer day sometime as spring gets underway, really put some thought into leaving the car behind, and sporting some tennis shoes and walking shorts for a change!

February 21, 2011

Make long term goals to streamline your spending

Filed under: Finance — Tags: — admin @ 1:12 pm

As hard as we all try to save money and spend less, one thing quickly becomes apparent… even if you make a good wage and have a great, steady job… the money always seems to go somewhere! And there is a lot of truth to the simple statement that says money was made to be spent! We may not like the guy who first said this, but in the end it seems that he was right. We work to make money so that we can, inevitably and over the course of time, spend it on the things that we need and want to have.

So, taking this principle into account, one might say that saving money is not so big a question. Rather, shouldn’t the question we ask ourselves be “how is the most effective way to spend the money that I have”? This is an interesting thought, if you really think about it. And, as crazy as it sounds at first, you have to agree that there is a measure of truth to it. How can we streamline our spending so that we spend our money in the most effective and meaningful way?

Well, there are a lot of ways to answer this question, but here are a few tidbits to nibble at in the meantime.

First of all, you need to figure out what you want to be doing in a year, five years, ten years, or even forty years down the road. Do you have any idea where you want to be, or what you want to have in ten years? If you do, then you are actually a step ahead of the crowd! Most people do not think this far in advance, but thinking and making some tough decisions now rather than later can actually pay huge profits down the road.

For example, do you want to own a restaurant at some point? Well, if you do, then you should streamline your spending so that the money you spend NOW impacts that plan in a positive way LATER! So, if you have to choose between a night out to the movies or a new cookbook, buying a cookbook might actually make more sense in the long run. It might not seem as fun NOW, but in ten years you will look back and not feel like that money was wasted as you might if you spend it going out to the movies.

This is truly a deep subject, but it is definitely something to consider as you plan your budget and spend your money. You only have so much of it… so why not spend it in the wisest and most well-planned fashion possible? It might just make the difference between having enough to get you to where you want to be some day, or falling short along the way.

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